Changing Things Up with Kanga Exchange

The Banking System

History

Wherever civilization exists, trade and commerce are sure to follow. And the earliest recorded forms of banking systems were trade logs for record keeping. In ancient Mesopotamia and Babylonia alone, there is evidence supporting the concept of lending crops or seeds for a return of interest at a later time. This eventually gave rise to merchant banks that funded expeditions across the Silk Road for a profit [1]. However, the most novel changes to the world of banking happened in the 17th to 19th centuries giving birth to the formal adoption of deposits, loans and debts.

In fact, the illustrious Rothschild family helped cement international financing in the 19th century by loaning money to the Bank of England, purchasing stocks, investing in various projects around the world and financing military efforts. They even took in deposits from people and created new banks. Today, they remain the richest family in history with an estimated net worth of 250 billion to 2 trillion dollars [2].

Why We Need It

Financial institutions like banks are establishments that conduct financial transcations i.e. investments, loans and deposits. They are important because they provide substantial liquidity to an economy, allowing for high levels of economic activity. According to the Brookings Institute, banks accomplish this in three main ways: offering credit, managing markets and pooling risk among consumers [3]. In fact, the investment portion of a country’s GDP is greatly affected by financial institutions because they facilitate people’s savings and investments, both of which support economic growth.

Current Issues

In recent years, there has been growing criticism about how banks operate. Some people are protesting that the banking industry has become too complex and less transparent in their dealings. Additionally, banks these days are funded almost entirely out of debt [4]. This means that majority of the funds that banks are lending out is in fact borrowed. This results in two unfortunate scenarios: recklessness on the part of the banks and very little fallback for mistakes. Banks are essentially gambling with people’s money as they invest them in various ventures without a lot of room for error. And because the biggest holders of bank debt are other banks, if one financial institution gets into trouble, other banks are inevitably affected as well.

What makes things even worse is the fact that consumers are made to bear the brunt of these financial behemoths’ mistakes. As a case in point, after the 2008 financial crisis, banks were in a low interest rate situation, not to mention experiencing diminished income due to the recession. In order to make up for the deficit in revenue, they raised service fees in the succeeding years by a considerable margin. According to a recent Cleveland Fed Study, service charges increased from 14% of noninterest income in 2001 to over 25% in 2018. In fact, in 2019, US banks raked in roughly 11 billion dollars from overdraft fees alone [5]. Banks have amassed billions of dollars worth of profits by controlling the system and taking advantage of their customers. This explains why financial services is still the least trusted sector of the American economy.

The Change

In the past, putting money in banks yielded some interest for the customer, which is an attractive incentive. However, today, taking inflation into consideration, it is more likely that customers will lose money in the long run. Yet despite these unfair and sometimes deceptive banking practices, average Joes are often left with little recourse given the power and influence that big banks wield. However, blockchain technology and bitcoin finally changed the game because these gave people a fairer option for their financial needs. The birth of decentralized finance (DeFi) has allowed ordinary people from any part of the world to take control of their own money and access spaces that enable them to maximize profits, something that previously was only open to financial giants of traditional banking.

There is now a revolutionary platform available that gives everyone unprecedented financial opportunities that can be life-changing. Cryptocurrency teams are also investing a great deal of time and effort to ensure that their projects support a simple and transparent ecosystem for users. Yet despite all this, less digital savvy individuals still find the world of cryptocurrency quite alien and very challenging to participate in. There is an undeniable gap that hinders people from fully maximizing the benefits that cryptocurrency offers. This gap is what a lot of scammers take advantage of, leading to heartbreaking stories of fraud.

The Opportunity

What Is Kanga?

Kanga Exchange is a dynamically developing system of FinTech tools and services aimed at encouraging and facilitating the widespread use of cryptocurrencies in everyday life. The main area of Kanga’s activity is the cryptocurrency exchange, which was launched in September 2018 and is available to users without the need for KYC [6]. Kanga has seen the immense opportunity that exists within the gap between cryptocurrency and its target market. So it is now bridging that gap with an approach that is novel in the cryptocurrency space. In recent years, Kanga Exchange has created a network of more than 250 cryptocurrency exchange offices throughout Poland with plans of expanding across Europe and the world in the next three years.

What is the KNG token?

KNG is the utility token used for operations on the Kanga Exchange. These include operations on the stock exchange, cryptocurrency exchange services in physical exchange offices, an IEO tokenization platform, payment gateways, loans secured by cryptocurrencies, and billing systems facilitating settlements in cryptocurrencies. All fees for using the aforementioned services are collected in the KNG token as it is the only means of payment accepted by Kanga. The supply for KNG tokens is limited, they are divisible, and according to the ERC-20 protocol.

The KNG token also boasts of almost unlimited liquidity and automatic interchangeability so there is no need to buy KNG if customers want to use a service. Rather, when an operation is performed on the Kanga Exchange, the fee is charged in the client’s currency and then automatically converted to KNG [7].

Proof-of-Stake

The Proof-of-Stake (PoS) mechanism utilized by Kanga enables KNG token holders to share in the profits from transaction fees charged on the Kanga Exchange platform. Every holder can deposit KNG, oPLN, oEUR and USDT tokens to a dedicated PoS account and receive rewards in proportion to the staked amount. Kanga shares the full revenue generated by the exchange in the KNG staking pool. Additionally, through the PoS mechanism, the system of the market assigns daily prizes to users that stake KNG and the profit is a proportional part of the trading gain, which is shared between all PoS KNG users.

Omega Stablecoins

oPLN, oEUR and oUSD are stablecoin cryptocurrencies that are native to the Kanga Exchange. They can be withdrawn in the form of cash at an ATM or through physical offices throughout Poland. Omega is based on the Ethereum Blockchain and they can be conveniently sent to other Kanga users by simply using their email address.

Why Kanga?

Kanga’s goal is two-fold. It aims to achieve mass adoption, something that has yet remained elusive in the current crypto space. By providing physical offices and convenient ramp-on services to people who prefer face-to-face transactions over digital ones, Kanga Exchange is able to capture a sizeable and largely untapped offline market. Secondly, Kanga aims to disrupt the cryptocurrency exchange market predominantly monopolized by major centralized exchanges that offer limited services to users. Kanga believes that by providing superior services and more attractive rewards, it can far outperform the competition.

Kanga is shaking things up not only through the various services it offers, but also by taking cryptocurrency to the streets. It is giving average Joes a platform to trade and invest in scales that the Rothschilds of this world have long enjoyed exclusively. By providing a hassle-free means to convert Fiat to cryptocurrency and vice versa, Kanga is incorporating crypto into people’s everyday routines that will directly lead to widespread adoption.

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Chain Ridge Capital

Chain Ridge Capital

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We invest in companies and protocols building the next wave of innovations in the digital space with the product-market fit real use cases.