KuCoin has joined the league of cryptocurrency exchange platforms to offer specialized trading services for institutional investors. The platform has also debunked claims of shady activities on accounts of its empty “office” in Hong Kong.
The KuCoin Institutional Investor Program
The Singapore-based exchange platform announced the launch of a program for institutional investors in a blog post published on Wednesday (August 8, 2018). According to the announcement, KuCoin wishes to encourage more big-money players to engage in high-frequency cryptocurrency trades. The statement also went on to state that qualified investors would receive discounts on trading fees.
According to KuCoin, interested institutional investors will have to complete a know-your-customer (KYC) verification process. Upon completion of the verification step, the big-money traders will be all set up within five working days. KuCoin plans to offer fee discounts of between 20 percent and 80 percent for at least the first month of trading.
The decision to offer an institutional trading deck comes as many other players in the cryptocurrency exchange market like Coinbase etc, are doing the same. Earlier in the year, the platform announced Q1 2018 profit of $7.6 million.
Cryptocurrency Exchange Platform Refutes Hong Kong Office Scam Claims
In another development, a controversial issue has arisen concerning the KuCoin’s operations. In a Medium post on Friday by Jackson Wong, it was alleged that a registered address purportedly belonging to KuCoin in Hong Kong doesn’t exist. Wong had long been suspicious of KuCoin’s claims that it operated out of Hong Kong.
To confirm his suspicions, Wong visited the listed KuCoin address in Hong Kong and found that the platform did not indeed operate out of that location. In his blog post, Wong warned traders to be wary of an exit scam from KuCoin saying:
Since KuCoin is completely in stealth, and you couldn’t find them in their registered “office”, nor is there even a single person in their “office”, if KuCoin decides to exit scam on us — either by withholding our withdrawals or simply by shutting down their entire exchange and run with our money —we will have absolutely no recourse. And GOOD LUCK to you then in trying to get back your money.
In response, the platform released a statement on Sunday (August 12, 2018) refuting the claims. According to the statement, the “Hong Kong address is merely a mailing address” of one of its subsidiary companies. KuCoin went on to assure its customers of its legitimacy saying its headquarters was in Singapore. The statement also mentioned the fact that the platform operates out of four major countries with more than 300 employees.
Do you think KuCoin’s institutional trading service will attract big-money cryptocurrency investors? Let us know your views in the comment section below.
Image courtesy of KuCoin and ShutterStock