Cryptocurrency General News

KuCoin launches derivatives trading platform KuMEX



IDG-backed KuCoin has announced the beta launch of its derivatives trading platform, KuMEX. To start, the new platform will offer trading of its so-called Bitcoin Perpetual Contract (XBTUSDM). 

KuCoin is the latest cryptocurrency exchange to announce its intention to gatecrash the market for cryptocurrency derivatives, a space currently dominated by behemoth BitMEX. Houbi, Binance, and Bitfinex have recently launched or announced the impending launch of their own platforms to trade perpetual swaps, a synthetic way to bet on cryptocurrencies. 

As part of its attempt to lure traders to the new venue, KuMEX will offer rebates to certain traders.

“At the same time, KuMEX offers a negative fee for Makers at a rate of -0.025% with a certain amount of fixed commission, encouraging users to provide liquidity to the platform through making the market and earning some commission as an incentive,” the press release reads.

Furthermore, the platform uses Bitcoin Spot Index that volume-weights the price of bitcoin in six major exchanges—Coinbase Pro, Bitstamp, Kraken, Gemini, Liquid and Bittrex. According to the press release, by using figures from more exchanges, KuMEX hopes to achieve a more “fair and rigorous” bitcoin index price. Meanwhile, rival BitMEX prices its swaps based on data from a pool of three exchanges. 

KuCoin also announced a trading competition, with a reward of 10,000 KCS for users with top scores in their return rate ranking.



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