Kyber Network (KNC): Is It A Good Buy?

Last Updated May 16th 2022
5 Min Read

Invest in the future of DeFi by buying the KNC cryptocurrency.

Kyber Network is a decentralized finance (DeFi) project that gives users the ability to exchange one cryptocurrency for another without having to use a centralized exchange. Merchants can also use the Kyber Network to accept different cryptocurrencies and still receive payment in the crypto asset of their choosing.

The average crypto project often has its own native crypto token. Users who don’t have the native token of a network usually have to go to an exchange and buy some before they can participate. The goal of Kyber is to eliminate the need for this step by making it easier for people to switch between tokens.

So is KNC a good buy? 

Read more about the network fundamentals, unique offerings, and future roadmap of Kyber Network before making an informed investment decision. 

Kyber Network: An Overview 

Kyber is the developer of an on-chain liquidity protocol that allows decentralized cryptocurrency swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem. The Kyber Network was founded in 2017 by Yaron Velner, Victor Tran, and Loi Luu. The team raised 200,000 ETH (worth about $50 million at the time) in an initial coin offering (ICO) for its KNC crypto. The software was launched on Ethereum in February 2018.

The Kyber Network allows people to exchange ETH and other ERC-20 tokens in an instant, decentralized way by using liquidity pools — pools of different cryptocurrencies that any project can tap into. There’s no need for registration or account creation as there is with centralized exchanges.

For example, with the Kyber Network, a vendor can let customers pay in the cryptocurrency of their choice and still receive payment in the vendor’s own preferred crypto.

Decentralized applications (dApps) are another potential use case. The way things work right now, you can’t use a dApp if you don’t hold the native token of its network. With Kyber, anyone can take the tokens they currently have, swap them for the token of the dApp they want to use, and be on their way.

The token swaps happen on the Ethereum blockchain, so transactions are transparent. That said, one of Kyber’s goals is to work with other blockchains. To this end, the developers have focused on creating software that will allow anyone to incorporate the Kyber tech onto any other smart contract-powered blockchain.

A variety of dApps, wallets, and vendors have used this to their advantage so far. Other decentralized exchanges, like the Uniswap DEX, have also partnered to share liquidity between their protocols. 

Kyber Network has positioned itself as a crypto project with high growth potential, making KNC a good buy in 2022.

Don't Miss: Kyber Network (KNC) Price Predictions

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Kyber Network: Pros 

Unique Architecture and Offerings 

As every exchange on Kyber Network is completed in a single blockchain transaction, the swapping of tokens is instant. Thus, takers do not have to wait for the trade to go through. Notably, partial trade execution does not happen on Kyber. There can only be full or no trade. Hence, if there are chances that the order will not be fulfilled in its totality, the trade will get canceled.

Kyber Network also allows users to check the rates they will receive for exchanging tokens. Thus, they can decide if they would like to go ahead with the trade or not.

It is quite simple to integrate Kyber Network in any smart contract to offer an instant exchange of tokens enabling multiple trade execution. Many such unique offerings and technical capabilities make KNC one of the top cryptocurrencies.

KNC Tokenomics 

KNC is a utility and governance token and an integral part of Kyber Network. KNC allows token holders to play a critical role in building a wide base of stakeholders and capturing value created by new innovations on Kyber Network. KNC holders stake and vote to receive trading fees from protocols in the network. More rewards are generated as more trades are executed, and new protocols are added.

KNC is dynamic and can be upgraded, minted, or burned by KyberDAO to support liquidity and growth better. Holding KNC means having a stake in all the vital innovation and liquidity protocols created for DeFi. 

For these reasons, KNC appears to be a good buy and might be worthwhile adding KNC to your investment portfolio.

Kyber Network: Cons 

Many experts consider Kyber Network Crystals (KNC) to be a speculative investment at best. Unless someone is actively using the Kyber Network (or staking KNC), there’s no other reason to hold KNC beyond hoping for speculative gains.

KNC may be as good as any other altcoin for those seeking quick profits in the crypto markets. Notably, many altcoins have gone to zero, and the possibility of that happening with KNC can’t be ruled out. 

Bottom Line 

For a long time now, decentralized exchanges (DEXs) have been touted as a transparent, more secure, and cheaper alternative to traditional exchanges. Currently, some decentralized exchange options include Uniswap, 0x, IDEX, and Kyber Network. While DEXs are still far from surpassing centralized exchanges in volume and liquidity, they have certainly grown significantly in the past few years.

Kyber Network, too, is growing at a rapid pace. In time, Kyber Network is likely to increase its user base, which will exacerbate the liquidity woes in the DeFi space. The current crypto bull market has played a crucial role in bringing Kyber Network into the limelight. With strong network fundamentals and a bright prospect ahead, KNC appears to be a good buy.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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