ICO Review: Kyber Network (KNC) – Decentralized Exchange For Instant Trading

Kyber Network is a new decentralized exchange that allows for instant trading and conversion of cryptocurrency.

Full report by Crush Crypto: https://crushcrypto.com/analysis-of-kyber/

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Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
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What does the company/project do?

Kyber Network is a new decentralized exchange that allows for instant trading and conversion of cryptocurrency. It is trustless, instantaneous, liquid and has a locked-in conversion rate.

Primary uses of KyberNetwork include: exchange, proxy payments, derivatives and cross-chain payments.

KyberNetwork does everything on-chain because off-chain channels do not provide settlement guarantee, relies on trusted third parties and has low compatibility with Ethereum smart contracts.

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What are the tokens used for and how can token holders make money?

KNC tokens are required for reserves to participate in the network and to reward various parties who will help generate more trading activities in the platform. Before operating, KyberNetwork reserves need to pre-purchase and store KNC tokens. In every trade, a small fraction of the trade volume will be paid by the reserve to KyberNetwork platform in KNC.

The collected KNC tokens from the fees, after paying to the supporting partners, will be burned, i.e. taken out of circulation. It can cause the token value to appreciate even if the project itself does not appreciate in value.

The value of KNC will be mostly derived from the second use – profits to be used to buyback KNC tokens and taken out of circulation. This acts like a share buyback in the stock market.

As the value of KNC tokens hinges on how much profit KyberNetwork can generate, the more volume and profit the network generates, the more valuable KNC tokens should be.
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Opportunities

– The project’s idea is great and would push cryptocurrency as a whole forward. Instant exchange in a decentralized manner? Imagine how much better it would be compared to the exchanges that we are dealing with now.
– The project has a strong team who worked together in another blockchain venture prior to starting Kyber.
– Kyber is one of the two projects that Vitalik is an official advisor of, with the other being Omise GO. Omise GO is one of the most successful ICO this year and became the most valuable token after trading for just two months. It generated 37x return compared to Ether over the same period.
– Kyber ICO has generated great awareness. Its Slack channel is the largest in the world with over 33,000 members. There are 38,000 white listed participants for the ICO, make Kyber one of the most anticipated ICOs of the year.
– KNC token allows token holders to enjoy the profits made by Kyber in the form of token buyback. Because of this, KNC tokens have better value proposition than most other ICOs.
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Concerns

– The reserve system is pretty capital intensive. Guaranteeing liquidity for every tokens out there require reserve managers to hold a non-trivial amount of random illiquid tokens and it can tie up a lot of capital.
– The final stage for Kyber, cross-chain trading, will take a few years, if ever, to realize as Polkadot and Cosmos will not be usable anytime soon.
– Kyber is slower than 0x in terms of development. If relayers built on 0x protocol are successful, users may not want to switch to Kyber.
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Disclaimer

The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don’t invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.

ICO Review: Kyber Network (KNC) – Decentralized Exchange For Instant Trading

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Kane Dane