Hong Kong-based cryptocurrency exchange KuCoin aims to enter the non-fungible token market as its liquidity trading platform Pool-X will open deposits of NFT assets starting November 16th.
Pool-X will launch an exchange platform designated for NFT tokens in the upcoming months.
KuCoin To Launch An NFT Exchage
According to the announcement from earlier today, the Pool-X platform will open the deposit services of Dego.Finance NFT assets from November 16th. Withdrawals will begin on November 20th, while the NFT exchange platform should arrive in early 2021.
Although NFTs have enjoyed 2020 with the transaction volume surging by triple-digit percentages, they are still far from reaching the mainstream even within the cryptocurrency field. Centralized exchanges have averted from NFTs, but KuCoin aims to change that.
The statement admitted that NFT trading presents numerous challenges for users as they lack the necessary education. However, KuCoin believes that the addition on centralized trading platforms “will greatly reduce the threshold of trading NFT in an easy and user-friendly way.”
“KuCoin is paying close attention to the NFT market. Although NFTs don’t have enough market attention at present, the potential is great. Moreover, it has many application scenarios in insurance, bonds, options, and other fields. It can even create a virtual real world on the blockchain.
So, we launched the NFT Trading Board to facilitate users’ participation in investing in NFT.” – commented KuCoin Global CEO Johnny Lyu.
NFTs And Their Recent Emergence
NFTs are cryptographic assets that contain unique information and traits, which prevents them from being mutually interchangeable. Some of their applications could be as collectibles and artworks.
Their popularity has grown substantially since the start of the year and even received an endorsement from famous individuals. The Canadian actor William Shatner, arguably best known for his iconic role as Captain Kirk in the original Star Trek series, sold about 125,000 digital photographs with personal memorabilia from his early days.
Later on, another Hollywood powerhouse Ashton Kutcher and the heiress of the Hilton empire Paris Hilton joined as well. Both of them utilized an Ethereum-based platform to sell their own digital art to bidders for charity campaigns.
Some DeFi protocols also took advantage of the NFT craze allowing users to farm NFT tokens. This resulted in massive price pumps during the summer but so far hasn’t exploded in popularity.