HomeUncategorizedKuCoin Makes All the Rage for Sky-High Returns on Bitcoin Binary Investment...
KuCoin Makes All the Rage for Sky-High Returns on Bitcoin Binary Investment Earning Products
There was a time when high annual interest rates on cryptocurrency products seemed like the best way to drive adoption. That time has passed.
This week, cryptocurrency exchange KuCoin faces scrutiny as its KuCoin Earn page boasts an APR of 233.15%. Ethereum253.28% Bitcoinand 100% active Tether deposits. Although the company’s website states that Tether (USDT) rates are part of the promotion, the ETH and BTC rates listed correspond to the advanced “dual investment” KuCoin Earn product.
All the attention sent 24-hour volumes to the exchange, which was $640 million yesterday, to $862 million today, making it the fifth largest centralized exchange by normalized volume. According to CoinGecko.
This raised some eyebrows on Crypto Twitter, with defenders dismissing the criticism. FUD (crypto-native acronym for fear, uncertainty and doubt).
Binary investment products are derivatives that allow customers to invest in one currency, such as BTC, and potentially profit by withdrawing the money in another currency, such as USDT, when the contract expires and is due.
They offer high interest rates as it can be very risky. The main reason for this is that it is an unprotected product. Critics of these products, such as DeFi Pulse co-founder Scott Lewis, call such schemes because investors risk getting less money than they put in, rather than simply getting a poor or no return on their investment.predator.”
Kucoin’s “Binary Investment” product is just a direct sale to Kucoin, but it’s explained in a cryptic way, so it’s less clear to noobs. pic.twitter.com/mIoN3yGDUC
But the timing of the product’s debut on Wednesday has confused users, who believe it is an attempt to get more deposits into the stock market. Earlier this month, after problems began to emerge for the now-bankrupt FTX, CEO Johnny Liu said. on Twitter, “Protecting user funds is a top priority at KuCoin. In about a month’s time, we’ll be releasing Merkle’s proof of stock, or POF.”
Published by KuCoin remains of some of the purses, and their addresses on Nov. 11, the day FTX filed for bankruptcy but had yet to file an audit from a third-party accounting firm. In the meantime, DeFi Llama and Nansen list their reserves at $2.2 billion and $2.5 billion, respectively. However, the public has no way of knowing what the exchange’s liabilities are, or whether the exchange has enough assets to cover those liabilities, based on on-chain data or proof-of-reserve certificates.
The main KuCoin Updates account spent most of the day complaining about users who couldn’t get their money back, pointing people to a blog post about it. binary investment product. KuCoin representatives did not respond Open the passwordcomment request.
Both the main KuCoin Twitter account and Liu are trying to dispel the rumors the exchange is insolvent, meaning it does not have enough assets to pay its debts.
“KuCoin’s Binary Investment Product has generated some real buzz,” Liu said Wednesday morning. “Please note that this is not a sting or guaranteed interest product and may involve passive income with potential risk.”
KuCoin’s Binary Investment Product has generated some real buzz. PLEASE NOTE that this is not a staking or guaranteed interest product and may involve passive income with potential risk. Think before investing, make sure you know the projects or products well. https://t.co/Vdm9vc6CDL
Incredibly high interest rates attract attention throughout the industry. They are the reason detractors refer to any crypto project as a Ponzi scheme, where early investors are paid huge returns using the money of newer investors. The illusion lasts as long as the creator can continue to attract new investors.
If the user clicks on the icon to expand the ETH row KuCoin Earn websitethey will find that ETH deposit rates of 4.39% and escrow rates of 2% are less noticeable.
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