Kyber Coin Review: Powering An Alternative to Crypto Exchanges
If you trade cryptocurrencies, you’ve probably found yourself frustrated at the complexity of converting them. Wouldn’t it be great if you could seamlessly switch between tokens without having to use an exchange every time? That’s exactly what the Kyber network provides — along with a little help from its governance token, Kyber coin.
Ever since Kyber coin (KNC( launched in 2018, the Singapore-based cryptocurrency has attracted plenty of interest. Positive reviews have poured in, and an increasing number of developers have chosen to run their projects on Kyber’s network — everything points to a success story.
But does Kyber coin live up to its reputation? And is it the right choice for you? We’ll answer these questions (and more) in the analysis below.
What is the kyber network coin (KNC)?
It would be impossible to explain what Kyber network’s coin is without delving into the Kyber network itself — you can’t have one without the other. But a word of warning: things are about to get technical.
Essentially, Kyber is an Ethereum-based network that makes trades and transactions between different cryptocurrencies easier. Developers can also launch decentralized applications (dApps) through Kyber, which allows them to facilitate token exchanges more easily than many similar platforms.
It’s all thanks to Kyber’s special liquidity protocol — but more on that later.
Kyber network history
Founders Loi Luu, Victor Tran, and Yaron Velner launched Kyber in 2017. Their mission? To enable seamless cryptocurrency exchange while staying true to the core principles of decentralization.
The project raised around $50 million in its ICO and has gone from strength to strength ever since, attracting funding from major investment firms like Cipher Ventures and WolfEdge Capital.
Today, Kyber’s team boasts 50 designers, developers, and engineers with backgrounds spanning blockchain research, prestigious PhDs, and work on other open-source crypto projects. An increasing number of dApps and wallets are also choosing to launch on the network, such as Ethermon (a dApp for gaming) and EnjinWallet (a cryptocurrency wallet for mobile).
On-chain liquidity protocol
Kyber network’s standout feature is its on-chain liquidity protocol. In plain English, this means you can exchange cryptocurrencies with others connected to the Kyber network — even if they’re using different coins or tokens.
You can trade, convert, and exchange cryptocurrencies on the network without having to turn to an exchange. Instead, Kyber connects those who want a certain crypto with suppliers (such as third-party exchanges, individuals on the platform, or larger teams of liquidity providers). All while offering competitive rates.
This solves a significant problem for applications that need to integrate token swaps into their services, giving them greater flexibility and more development opportunities. By overcoming the liquidity problem, Kyber also avoids the problems of price volatility and exploitation often found in decentralized finance platforms.
None of this would be possible without Kyber coin (KNC), the native currency for the Kyber network.
KNC has three key uses:
- Paying transaction fees on the Kyber network.
- Rewarding you for providing liquidity (with part of the spread earned from trades).
- Paying operation fees (when users buy KNC with third-party tokens).
KNC is also a governance token, meaning coin holders can play a role in how Kyber runs by staking their tokens and voting on new measures (e.g., changes to the fee model).
As I touched on already, decentralization was a key motivation for Kyber’s founders — they stayed true to their values, because it’s now a standout benefit of the platform. You can use the Kyber network without registering, and it also doesn’t store your data, giving a higher level of security than other platforms.
Most people buy cryptocurrencies on centralized exchanges (like Coinbase, Gemini, and Kraken) before transferring them elsewhere. In doing so, you would need to register your details with the exchange, putting yourself at risk of data breaches.
By offering an alternative way to convert and trade coins, Kyber provides a smooth experience while protecting your privacy.
But a word of warning — no matter how convenient the Kyber network might be in theory, it’s not exactly beginner-friendly. The network doesn’t work for non-Ethereum currencies or fiat currency; for instance, if you wanted to exchange MKR coin for DAI coin, the transaction would involve converting the currencies to Ethereum.
Is the kyber network coin a good investment?
Now you know what KNC and the platform behind it are, you might now wonder whether kyber coin is a good investment.
First stop: its price history.
Kyber coin’s price has certainly had an interesting trajectory so far. Shortly after its launch, the price jumped to an all-time high of $5.74 in January 2018, before appearing to stabilize at a more modest value hovering between $0.2 and $0.6 from September 2018 to January 2018.
Then, in April 2021, it reached another high point of $3.75 — not quite at the level of January 2018, but significantly better than previous years. However, this trend quickly reversed, with the price dropping below $2 in June 2021.
But when do the experts expect the price to return to previous highs?
Many pundits (including Walletinvestors and Trading Beasts) expect KNC to reach between $2 and $3 by the end of 2021. This might seem unlikely with the current downward price trend, but when you look at what KNC can do, the optimism makes more sense.
Although KNC has had a bumpy road so far (par for the course in the crypto world), the question of whether to invest comes down to whether you believe in Kyber’s core mission.
As we’ve seen already, its on-chain liquidity protocol solves many of the problems posed by crypto exchanges and other Ethereum-based networks. The number of developers that have jumped to embrace Kyber attests to that.
Many protocols, applications, and wallets require token trading or token swaps, and a network like Kyber makes them possible without sacrificing the principles of decentralized finance. The ability of Kyber’s on-chain liquidity protocol to work with different cryptocurrencies provides the accessibility and versatility required to make the KNC usable – in line with the network’s objectives.
In turn, the greater usability could potentially lead to increased demand for KNC and significant returns for investors like you.
How to buy Kyber coin with MyConstant loans
No review of Kyber coin would be complete without telling you how to buy some of your own. You can purchase KNC on most major exchanges — but once you have some, you can do far more than just leave it sitting there.
With platforms like MyConstant, you can collateralize your Kyber coin to receive instant loans with low-interest rates, allowing you to make further crypto investments if you’re so inclined. Or, simply deposit it into a multi-cryptocurrency wallet for safekeeping.
Other benefits of using our platform include:
- 24/7 customer service.
- Rates as low as 6.5%.
- Early repayments for lower rates.
- Instant matching.
- Store and borrow against over 70+ different cryptocurrencies.
Sounds interesting? Sign up for a free account today and start investing in Kyber coin.
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