Crypto usage in emerging markets driven by necessity: KuCoin Labs leader
The spread of cryptocurrencies around the world has been driven by different uses, with important differences becoming apparent between developed and emerging markets.
Lou Yu, who heads KuCoin Labs, addressed the topic after a keynote speech during the second day of Blockchain Economy Istanbul in Turkey. In an exclusive interview with Cointelegraph, Yu unpacked his experience working with a variety of projects and companies around the world and the key differences between primary and secondary markets.
Cointelegraph editor Erhan Karahman interviews KuCoin Labs head Lou Yu at Blockchain Economy Istanbul.
Operating in over 200 countries globally, Kucoin is well positioned to provide insight into trading habits and trends as well as innovations in the space, given that it lists, invests in and supports various cryptocurrency and blockchain-focused projects.
Yu noted that trading societies are particularly active in emerging markets, more so than their developed counterparts, which are less active despite superior amounts of capital. While these emerging markets use cryptocurrencies frequently, projects from these areas could do better to target their services to local markets:
“We’re seeing all the data here from secondary markets, and we think it’s more relevant to local projects to benefit the local economy, and not just taking products to the US to benefit retailers there, for example.”
The potential for Bitcoin and cryptocurrencies to tackle unique challenges in emerging markets has been a topic at Blockchain Economy Istanbul and Yu also believes that industry-shaping projects may well emerge from developing countries.
Related: 75% of Emerging Markets Investors Want More Crypto: Survey
The KuCoin Labs CEO highlighted the propensity of developed markets such as Europe and the US to use blockchain primarily for cryptocurrencies. Meanwhile, emerging markets are using the technology not only to use and trade cryptocurrencies, but to build tools and products to solve vexing problems:
“For developed markets it is a hobby, for emerging markets it is a necessity. In emerging countries, people lack a lot of tools and infrastructure and are likely to be limited by language barriers, political, geographical, technological and economic barriers.”
Yu said that emerging countries increasingly need the basic infrastructure of Web3 to solve problems that Web2 does not have. She also noted that much of the KuCoin Labs portfolio consists of projects from developed countries. The projects coming from emerging countries do not focus on offering their products or services to the local market, instead they focus on addressing and serving the wider cryptocurrency ecosystem.
Yu emphasized that the incubator has been focused on connecting the ecosystem by working with other hubs, launch pads as well as layer-1 and layer-2 protocols. Financial investment in projects from emerging markets is a focal point, along with networking and building potential business partnerships.
