The proliferation of cryptocurrencies around the world has been driven by different use cases, with key differences becoming apparent between developed and emerging market environments.
Lou Yu, who runs KuCoin Labs, addressed the issue after a keynote address during the second day of Blockchain Economy Istanbul in Turkey. In an exclusive interview with Cointelegraph, Yu revealed his experience working with a variety of projects and companies around the world and the key differences between the primary and secondary markets.
Cointelegraph editor Erhan Karahman interviews KuCoin Labs director Lou Yu at Blockchain Economy Istanbul.
Kucoin operates in over 200 countries globally and is well positioned to provide insight into trading habits and trends as well as innovations in the space as it lists, invests in and supports various cryptocurrency and blockchain focused projects.
Yu noted that business communities are particularly active in emerging markets, more so than their developed counterparts, which are less active despite higher amounts of capital. While these emerging markets frequently use cryptocurrencies, projects in these areas could do better by targeting their services at local markets:
“We’re looking at all the data here from the secondary markets and we think it’s more relevant that local projects benefit the local economy, and not just bring products to the United States to benefit merchants there, for example.”
The potential of Bitcoin and cryptocurrencies to meet unique challenges in emerging markets has been a topic at Blockchain Economy Istanbul and Yu also believes that the projects shaping the industry could well come from developing countries.
Related: 75% of Investors in Emerging Markets Want More Crypto: Survey
The head of KuCoin Labs highlighted the propensity of developed markets like Europe and the United States to use blockchain primarily for cryptocurrencies. Meanwhile, emerging markets are using technology not only to use and trade cryptocurrencies, but also to create tools and products to solve perplexing problems:
“For developed markets it’s a hobby, for emerging markets it’s a necessity. In emerging countries, people lack many tools and infrastructure and are likely to be limited by language, political, geographic, technological and economic barriers.”
Yu said that emerging countries need more of the fundamental infrastructure in Web3 to solve problems that Web2 does not have. He also pointed out that much of the KuCoin Labs portfolio is made up of projects from developed countries. Projects that come from emerging countries do not focus on offering their products or services to their local market, but instead focus on addressing and serving the broader cryptocurrency ecosystem.
Yu emphasized that the incubator has focused on connecting the ecosystem by working with other exchanges, launch platforms, and layer 1 and layer 2 protocols. Financial investment in emerging market projects is a central point, along with networking and creation of potential trade associations.
This post Cryptocurrency Usage in Emerging Markets Driven by Need: Director of KuCoin Labs
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