Kyber FAQs

There are plenty of coins you buy through Coinberry, but one of the more interesting projects you can invest in is Kyber. What’s Kyber all about? Check out our FAQs as we answer this question and many others.

What is Kyber?

Source: https://kyber.network/

Kyber is a decentralized network that allows users to exchange Ethereum and other ERC-20 tokens without registration or KYC requirements. This is made possible by utilizing numerous liquidity ponds, otherwise known as “reserves” or “pools of crypto assets,” through which interested parties can integrate.

If that doesn’t make sense, here’s an example. Say a vendor allows clients to pay in any currency they choose but prefers to receive the payment in stablecoins like USDT. Kyber can handle the conversion behind the scenes. This is a common scenario. All of this swapping takes place on the Ethereum blockchain, which means everything is public.

Kyber was founded by Loi Luu and Victor Tran, two people living through the Defi revolution of 2017. The pair imagined a world where anyone could incorporate Kyber technology onto any smart contract-powered blockchain with ease by providing an easy-to-use architecture for developers just like them.

It didn’t take long for their dream to become a reality.

How does Kyber Solve the Exchange Problem?

Almost every blockchain has its own token, and in the early days of 2018, many projects were creating a second token solely for the purpose of storing value. These tokens exist on a smart contract and have a limited supply tied to a fiat currency or backed by an asset.

Exchanges like Kyber exist to make these transfers easier by allowing users to trade their assets for a more liquid token. Ideally, this process would take place directly on the blockchain through a series of transactions involving many tokens. 

However, this process would be prohibitively expensive and time-consuming. Instead, users can now swap their tokens instantly through Kyber rather than having to wait for individual transactions across all chains.

What is the Native Token of Kyber?

The native currency of the Kyber Network is known as Kyber Network Crystals (KNC).  Following a successful ICO in 2017, KNC raised CAD $76 million in exchange for Ethereum.

Function of KNC tokens

KNC holders can participate in Kyber Network governance via its own Decentralized Autonomous Organization (DAO). They can vote on network fees and proposals that directly affect them and earn rewards in Ether by staking their tokens.

The KNC generated as fines are either destroyed and removed from circulation or given to integrated dApps as an incentive to help them develop. Kyber Network’s broadly integrated protocol provides an on-chain, decentralized solution to Defi’s liquidity challenges, as well as an ecosystem-wide utility for ERC-20 tokens.

How Do The Tokenomics of Kyber Work?

Source: https://kyber.network/about/knc

The Kyber Network Crystal (KNC) was released in September 2017 during the project’s initial coin offering at a price of around CAD $1.40. There were 226,000 KNC minted for this highly anticipated event, with 61% going to those who bought them directly from the company and 39% being split evenly between founders/advisers with a mandatory one-year lockup period.

Why is Kyber appealing to investors?

Kyber Network provides token conversion services free of exchange rate risk if you are using an underlying platform that utilizes Kyber. 

For investors, this may seem like a bad thing. After all, why would they sell their tokens on an exchange if their value remains the same? To answer that question, we need to look at the behaviors of investors around the world. 

For retail investors in China and India, a large pool of capital wants to buy into crypto but lacks trading accounts with major centralized exchanges. For this reason, we see liquidity providers send their tokens to these exchanges where they can collect withdrawal fees and earn interest on digital assets.

Kyber 3.0

The rise of decentralized technology is bringing a better way for financial institutions to operate. 

Kyber is undergoing its most significant change since its inception as it transitions from a single token protocol into the world’s first liquidity hub for purpose-driven protocols. Kyber 3.0 will be implemented with phases that are designed to meet different Defi use cases, and this addition has launched a brand new DMM – “the Dynamic Market Maker.”

The future of Defi will be liquid, as the Kyber DMM is a new liquidity protocol that combines features from both traditional and crypto markets.

How Many Kyber Tokens are in Circulation?

Source: https://coinmarketcap.com/currencies/kyber-network-crystal-v2/

With a total supply of 178 million KNC tokens, Kyber Network has a market capitalization of roughly $393 million as of November 2021. Just over 177 million tokens are in circulation, according to our CoinMarketCap.

What Wallets Support Kyber?

One of the safest and most convenient ways to keep your Kyber Network (KNC) secure is with a hardware wallet. They are considered safer than desktop or mobile wallets because they do not connect to the Internet at any time. In addition, because they can’t access the device remotely, these features significantly reduce the attack vectors available to malicious parties, as they can’t tamper with it remotely.

Community Support/Social Media 

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Where Can I Buy Kyber?

You can buy Kyber on Coinberry by signing up for an account here.

Additional Resources

Want to learn more about Kyber? You’re in luck! We have additional content here that tells you all about this unique and exciting project.