What is Kyber Network (KNC)?
Future of KNC Cryptocurrency and know how to buy KNC

What is Kyber Network token (KNC)?

#1 - What is Kyber Network?

Kyber Network (KNC): The Basics

  1. The Kyber Network is an open-source, decentralized protocol built to support the instant exchange and conversion of digital assets and cryptocurrencies with high liquidity.
  2. Apart from being an exchange, it also facilitates P2P transactions. Using the Kyber Network Payment APIs, users can conduct P2P transactions without having the need to match their tokens.
  3. What does this mean fo the users? You could use the Kyber Network to pay someone in any token of your choice, but the receivers will receive their payments whatever tokens they prefer.

Kyber Network Crystal (KNC)

  1. The Kyber Network Crystal (KNC) is an important asset in Kyber Network reserve system. Reserves Managers are required purchase and possess KNC to operate reserves.
  2. KNC serves as a currency, used to pay transaction fee and rewards to third parties for generating trade volume.

Development of Kyber Network (KNC)

  1. The founder & CEO, Loi Luu has previously worked on Oyente (An open-source security analyzer for Ethereum contracts) and co-founder of Smartpool, (a decentralized mining pool project).
  2. It was during his previous stint at Oyente that Loi came up with idea of Kyber Network. He then co-founded Kyber Network along with Yaron Velner, who took charge as CTO and Victor Tran, who became the  Lead Engineer.
  3. Kyber Network launched its Initial Coin Offering in September 2017 with the aim to raise 200,000 ETH. KNC was then made available for trading on Binance later that month. Kyber Network pre-minted a total amount of 226,000,000 KyberNetwork Crystal tokens (KNC), which means that KNC mining is not supported by the platform. KNC token distribution, refer to the graph below:

Token distribution: 61.06% for the public; 19.47% for company; 19.47% for founders, advisors and early investors.

 

#2 - What are the benefits of Kyber Network (KNC)?

Kyber Network, an on-chain decentralized exchange, is built on Ethereum Protocol. It offers multiple uses, such as building an exchange for currency swaps and providing payment APIs for both users and merchants to instantly convert tokens without relying on trust-based systems.

  1. On the Kyber Network, the operator does not hold any user tokens, thus protecting users’ tokens from theft. As per its whitepaper - “users need not trust the intentions of the reserve entity and the KNC token holders, as the integrity of the operator is enforced/ensured by the smart contract.”
  2. It allows instant execution of exchange requests or token conversions request without any deposit confirmation or waiting time.
  3. Since Kyber Network runs on-chain and is accessible for all user accounts, including normal accounts and smart contracts, it allows direct interaction of smart contracts with the exchange without involving any third party to receive funds/payments from different tokens that they do not support originally. This allows it to be function as an on-chain proxy payment platform for both users and smart contracts.
  4. KyberNetwork does not require any modification in the underlying protocol of Ethereum and existing smart contracts to function. The payment API works with existing contracts from the get-go.

Use of KNC Tokens

  1. KNC tokens are required by reserves managers to participate in Kyber Network. KNC tokens are also used to various partners or entities for bringing any new trade volume to the Kyber Network.
  2. Reserve managers need to pre-purchase KNC tokens, which are then used to pay the Kyber network a fee for trading. This fee denotes the payment the reserve receives in return for the reserve manager’s right to be operate on the platform and generate profits from trading on the KyberNetwork.
  3. The collected KNC tokens from the fees, after paying for the operation expenses and to the supporting partners, will be burned , i.e. taken out of circulation.

 

#3 - How to buy and store KNC?

How to buy Kyber Network

  1. The Kyber Network cryptocurrency is available in more than 24 markets globally like - Binance, OKEx, Huobi, Bithumb, Liqui, and many others. With so many options available, it becomes difficult for users to compare rates on different exchanges. But that’s where CoinSwitch, the largest cryptocurrency exchange comes in. CoinSwitch helps convert your cryptocurrencies across all exchanges at the best rates, and allows users to pick the best option available.
  2. When using CoinSwitch, users don’t need to rely on a separate wallet from the exchange to store your ZEC coins. Instead, all transactions happen to and from your own personal private wallets, adding to a secure experience.

How to store KNC

Since KNC token is an ERC20 token, any wallet with support for ERC20 tokens can work as a Kyber Network wallet and store the tokens. There are many options: MyEtherWallet, Coinomi, MetaMask, Ledger Nano S, Trezor, etc. Kyber Network now integrates with MyEtherWallet, allowing users to convert tokens instantly from within MyEtherWallet.

 

#4 - What is the future of Kyber Network (KNC)?

Since its launch for trading on September 24, 2017, KNC has been volatile like many other cryptocurrencies.

  • KNC was launched with initial price of $1.85. At the end of year 2017 it closed at $2.62.
  • During January 2017 it reached its highest of all time of $6.0, generating nearly 4x returns for its investors. Bbut at the month end it declined to $4.31.
  • At the end of first quarter of 2018, its price declined to $0.998471, and as of June, it trades around $0.999265.
Also Read: Complete Analysis of Kyber Network | Live Kyber Network (KNC) Price Charts And Predictions

Price history

Date

Open

High

Low

Close

Volume

Market Cap

Jun 01, 2018

1.33

1.54

1.33

1.51

24,417,200

178,748,000

May 01, 2018

2.65

2.65

2.47

2.60

18,810,100

355,374,000

Apr 01, 2018

0.998562

1.01

0.896004

0.932025

4,787,510

133,940,000

Mar 01, 2018

1.73

1.94

1.72

1.89

3,383,640

231,807,000

Feb 01, 2018

4.09

4.36

3.26

3.54

16,993,000

549,124,000

Jan 01, 2018

2.62

3.17

2.57

3.06

22,476,900

351,759,000

 

#5 - How is KNC different from other cryptocurrencies?

  1. The KNC coin is the native token of Kyber Network. Like Bitcoin, which allow peer-to-peer transfers, KNC token is also used for peer-to-peer transactions.
  2. But that’s where the differences end. The KNC token is primarily required by reserve managers to operate in Kyber Network.
  3. KNC is also used in a variety of scenarios - from paying trading fees to giving as rewards to its partners, who provide new trades to the Kyber Network.
  4. The tokens that are collected are used to pay for various operational expenses and after paying for the operation expenses and to the supporting partners, will be burned , i.e. taken out of circulation.
  5. As per the Kyber Network WhitePaper “The burning of tokens could potentially increase the appreciation of the remaining KNC tokens as the total supply in circulation reduces. In order to determine the network fees, the conversion rate between KNC and ETH will be updated frequently to the Kyber contract by KNC operators, based on the trading rates on various exchanges. This approach would increase the demand of existing KNC tokens as the trading volume happening on Kyber Network increases. The approach also properly rewards all participants who help grow the ecosystem. KNC token holders can easily track the total supply by reading from the contract, without relying on any off-chain accounting firm.”

 

#6 - Should you invest in KNC?

  1. Over the months, since Kyber Network came into existence, it has seen many ups and downs.
  2. It is hard to deny that Kyber Network have grown considerably with many partners backing it up like, SelfKey, ETHLend, Wanchain, ICON, and others.
  3. In June 2018 Team announced Kyber Network 2.0 and future projects like KyberSwap, KyberGo, KyberLiquidity, and KyberReserves - intended to support quicker cross-currency swaps and increase trading volumes on the network. With this the future of Kyber Network looks promising, and provides good investment opportunities.
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