Investments in crypto in May reached 1 billion dollars thanks to the introduction of Notcoin, according to KuCoin.
The research by KuCoin suggests that the low volatility and high market value of cryptocurrencies have driven investors to seek alternatives like Notcoin, which has put all its tokens into circulation since the moment of launch.
Let’s see all the details below.
KuCoin: the role of low float and high FDV in the investment choices of crypto investors
As anticipated, the research department of KuCoin has released a report indicating that the cryptocurrency space attracted over 1 billion dollars in investments in May, recording a slight decline compared to the previous month.
On June 13, KuCoin Research announced that 156 investments were made public during the month of May. Additionally, the research department of the cryptocurrency exchange reported that $1.02 billion in investment capital was allocated to the sector.
This represents an increase of 10.61% compared to May 2023, but a decrease of 6.4% compared to April.
Regarding investment sectors, Ethereum, Ethereum Virtual Machine (EVM) chains, and layer-2 (L2) network projects have continued to be popular among institutional investors.
However, even non-EVM chains like Bitcoin, Solana, Fantom, and TON were among the fifteen most popular networks among investors in May. Animoca Brands and OKX Ventures were the major players among investors last month.
Animoca Brands has completed fifteen operations, while OKX Ventures has invested in eleven projects. Cogitent Ventures, SNZ Holding, and DWF Labs have also been active in May with ten, eight, and seven operations respectively.
Investors are turning towards meme token and celebrity token
According to KuCoin Research, in May investors shifted towards meme tokens and celebrity tokens in response to issues related to low circulation and high fully diluted valuations (FDV) of criptovalute.
KuCoin observes that the launch of tokens with high valuations and low circulating supplies has offered investors “a very narrow space”. As a result, they have sought alternatives. KuCoin Research stated:
“Some market operators have focused their attention on memes of characters or celebrities, relatively unknown low market capitalization assets, and new narratives.”
The researchers highlighted that Notcoin (NOT) was one of the tokens that benefited from this change in May. KuCoin stated that the launch of Notcoin with all tokens available from the beginning contributed to its growth last month.
On June 3rd, NOT became the fifth most traded cryptocurrency, surpassing the trading volume of the popular stablecoin USD Coin.
The price of the token reached a new all-time high of $0.02896 on June 2, bringing its market capitalization over 2 billion dollars.
Hong Kong issues a warning about the crypto exchange KuCoin
Hong Kong has recently issued a warning regarding the unregulated crypto exchange Kucoin, which, according to reports, requires payments to unlock funds from frozen accounts.
The Hong Kong Monetary Authority (HKMA) has alerted the public regarding a suspected fraudulent activity conducted through the exchange that falsely claims to be regulated by the HKMA.
In a public statement released on Friday on the official website of the government of the Hong Kong Special Administrative Region, the HKMA identified the digital platform “Kucoin” as guilty of false authorization claims by the HKMA.
Furthermore, also as the culprit of issuing documents allegedly originating from the HKMA, “requesting the payment of fees to recover funds from frozen accounts.”
However, it is not clear if the warning from the HKMA is specifically directed at KuCoin, which recently withdrew its license application to operate as a virtual asset trading platform (VATP) in Hong Kong.
L’HKMA has clarified that it has no connection with the cryptocurrency exchange and reiterated that it does not contact people regarding personal financial matters.
At the end of March, the United States Department of Justice sued KuCoin for alleged violations by the exchange and its founders, Chun Gan and Ke Tang.
In particular, accusing the platform of violating the Bank Secrecy Act and facilitating illegal money transfers related to money laundering operations.
Gan and Tang, both Chinese citizens, are still at large. The charges could lead the founders and other involved parties to face up to ten years in prison.
Following the lawsuit, customers withdrew over 350 million dollars from the cryptocurrency exchange, despite the company’s officials assuring the safety of their assets.
