Why KuCoin’s Decision to Secure a Strategic Investment from SIG is the Right Plan
It was only yesterday when KuCoin announced that it had secured a strategic investment from Susquehanna International Group (SIG), one of the largest quantitative trading firms. Netizens all over various social media platforms like Twitter, Reddit, Telegram, and Discord expressed their opinions about the said news. It’s a wonder to some people if rumors about KuCoin being in a sinking ship situation is real.
I have had a fair share of time spent on my research about this latest announcement from KuCoin. And I can conclude that KuCoin’s plan to Secure a Strategic Investment from SIG is a brilliant idea. Although I have to clarify that this is not financial advice. These are just the thoughts of an enthusiastic guy who likes to write on the internet.
What is SIG?
Susquehanna International Group (SIG) is considered one of the largest proprietary trading firms in the world. The firm handles roughly one out of every seven stock options traded in the world. SIG’s business thrives at the intersection of trading, quantitive research, and technology.
Why is Strategic Investment good for Global cryptocurrency exchanges like KuCoin?
There are many reasons why strategic investment can be an important part of the funding and growth strategy for many companies. For this instance, SIG can surely help KuCoin with product development, sales, joint ventures, and more. Like what was stated in the announcement, KuCoin and SIG will jointly support promising crypto startups through incubation, investment, and consultation, especially the projects built on the KCC chain.
The importance of an increase in investment cannot be underestimated because it can be an advanced tool to kick off or expand the business. Expanding a business like KuCoin is very essential as we need to stay competitive since there is a high possibility that cryptocurrency will be impacting the future of business transactions.
With that being said, it is important for KuCoin to be supported by a company where there should be a committed pool of capital to fund initial and follow-on investments — It is obvious that KuCoin found it with SIG. According to the article released on KuCoin’s website yesterday, the funds will be used to upgrade platform infrastructure and enrich the product lineup, preparing for the next bull run. Also, the capital will also support KuCoin’s global expansion and hiring plan.
According to the SIG investment team, This partnership is an important step for SIG that illustrates our strive to partner with the best players in every field. KuCoin is one of the fastest-growing crypto stars with an agile growth strategy and a forward-looking team. We believe this cooperation will create a synergy between SIG and KuCoin, benefiting the crypto industry by bringing it to a wider audience,
Obviously, the rumors about KuCoin’s liquidation are groundless. In fact, this is a piece of positive news, especially for KuCoin users. Now that KuCoin has found another partner with the same vision and values, the support of SIG will surely solidify their leading role as a centralized exchange and facilitate our ecosystem expansion in the decentralized Web 3.0 world.