Singapore-based KuCoin, a major crypto exchange with an active and loyal user base, has secured $20 million in a funding round led by $20 billion venture capital firm IDG.
Michael Gan, the CEO of KuCoin, wrote, “Today, we are thrilled to announce that we have closed our Series A Round of Funding, raising $20 million (USD) from IDG Capital, Matrix Partners and Neo Global Capital,” adding that the investment will allow KuCoin to continue to grow rapidly in the years to come.
“We are extremely excited and appreciative for the opportunity to be partnered with such highly respected investors. It is not only an endorsement of our achievements so far, but also a chance for KuCoin to achieve further success in the future.”
In August, Jackson Wong, a journalist based in Hong Kong, reported that the Hong Kong offices of KuCoin are empty and that the listed company address on the official website of KuCoin had not been occupied by the exchange for at least two years.
At the time, KuCoin responded to the report of Wong, explaining that KuCoin operates several subsidiaries in many countries including Hong Kong, Singapore, the Philippines, and Thailand, with more than 300 employees.
“There have been rumors that KuCoin’s central office in Hong Kong is empty. In fact, KuCoin’s public address in Hong Kong is merely a mailing address of one of KuCoin’s many subsidiary companies. KuCoin Headquarters is in Singapore. KuCoin has always been a global firm, with over 300 employees and four major offices in China, the Philippines, Singapore, and Thailand,” KuCoin team said in a statement released on the KuCoin subreddit.
However, despite the clarification offered by KuCoin to justify its deserted Hong Kong office, investors in the cryptocurrency community continued to question the solvency and legitimacy of the exchange’s operations.
Less than three months after the controversial incident, KuCoin secured a high profile funding round from one of the largest venture capital firms in Asia. The exchange’s CEO Michael Gan noted that the exchange had faced hardships and challenges over the past several months, but its active user base and partners have continuously allowed the platform to grow.
With the newly obtained capital, KuCoin is expected to release a new version of the platform called KuCoin 2.0 and expand its operations throughout Asia and other major markets to grow the business.
Crucially, Gan emphasized that the investment from IDG Capital will allow the company to improve its customer service and begin to offer concierge-level customer services in the short-term, competing against exchanges like Bithumb and Upbit in South Korea that offer walk-in services to newcomers in the cryptocurrency exchange market.
“Based on our newly-formed partnership, we are aiming to take further steps to make KuCoin the best exchange available. This will be done by bringing the KuCoin Platform 2.0 online, expanding to more markets, offering concierge-level customer services, and improving our capacity for researching and nurturing blockchain talents.”
With sufficient capital to aggressively expand internationally and world-class venture capital firms as its partners, KuCoin has shrugged off its past allegations and has vowed to compete in the highly competitive cryptocurrency exchange market.
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Last modified: May 20, 2020 2:25 PM UTC