Kyber Network: Is It A Profitable Investment?

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Kyber Network is a protocol that enables automated, decentralized, instant, and low-fee exchanges of Ethereum based digital assets. In short, it is a decentralized way to exchange ETH and ERC20 tokens instantly. This tool allows anyone to swap tokens without even registering. This article will provide you with in-depth information regarding the Kyber network and its native token. So read this article till the end. 

Kyber Network – Seamless Token Swaps, Anywhere!

Kyber Network is similar to the 0x project but instead performs all its functions in the blockchain. Unlike other exchanges, the Kyber network acts as a medium to transfer tokens from person to person.

Kyber network

The tokens that you send through the Kyber network don’t have to match the specific token that the receiver wants to receive. This feature attracts most of the Kyber network users. The different roles of Kyber network are:

  • Transferring tokens: Individuals send and receive tokens through the Kyber network
  • Liquidity: the internal or hosted reserve entities bring liquidity to the platform
  • Provide funds: provide funds to the public Reserve Entities and share the profits from the reserve.

The Kyber uses a diverse set of liquidity pools or pools of different crypto assets called reserves that any project can tap into or integrate with. This can be used if a vendor allowed customers to pay in whatever currency they wish, but receive the payment in their preferred token. Even if you are not a token holder of a certain Dapp you can’t use it. By using your existing tokens, you can instantly swap them for the Dapp specific token and away you go. These swappings happen directly on the Ethereum blockchain, which means that every transaction is completely transparent. 

Who found the Kyber Network?

The founders behind the Kyber network are Loi Luu, Victor Tran, Yaron Velner are the CEO, CTO, and advisor to the Kyber Network respectively. The mission or aim of the Kyber Network is to integrate with other protocols so they’ve focused on being developer-friendly by providing architecture to allow anyone to incorporate the technology onto any smart-contract powered blockchain.

Loi Luu later found Oyente, the first open-source security analyzer for Ethereum contracts. He also founded SmartPool, a decentralized mining pool project. Yaron Velner as been active in the Ethereum bug bounty program. 

Kyber Network Crystal(KNC)

Kyber Network crystals are the native tokens of Kyber Network. It is an ERC20 token that Reserve Managers need to purchase to operate a reserve on the network.  The network charges a small KNC fee to the reserve at each time an exchange occurs. This is for operational costs and to reward third-parties who bring trade volume to the network.

After that, the remaining tokens are burned or removed out of the circulation. After September 2017, Kyber Network Crystal settled into a trading price of around $1.00 until December 2017. After December like any other altcoins, KNC also trended up in price and sharply declined toward the beginning of January 2018. So KNC is a profitable investment only if you invest after detail studying of its price fluctuations.     

Fred Harris is a writer and performer who got involved in cryptocurrencies at the start of 2017 when he was hired to work at a Bitcoin-related company. He's passionate about cryptocurrency, digital rights, IT, and tech and has been an avid writer and follower of the crypto and blockchain space since 2015. He is specialized in machine learning, artificial intelligence, blockchain technology, and big data.

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