Some crypto companies are fully compliant, fully regulated, and still can't keep their bank accounts. Learn why the financial system is quietly freezing them out.
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Why can't a fully compliant, regulated crypto business secure a bank account in 2025?
If you're operating in this space, you already know the answer. You've lived through it. You've submitted the documentation, walked through your AML procedures, and demonstrated your regulatory compliance… only to be rejected. Or worse still, waking up to find your existing account frozen, with no real explanation and no path forward.
This isn't about isolated cases or bad actors being weeded out. It's a pattern of systematic risk aversion that's creating real barriers to growth across the entire sector, and it's throttling one of the most significant financial innovations of our generation.
We're Tap, and we're building the infrastructure that traditional banks refuse to provide.
The Economics Behind the Blockade
Let's examine what's actually driving this exclusion, because it's rarely about the reasons banks cite publicly.
The European Banking Authority has explicitly warned against unwarranted de-risking, noting it causes "severe consequences" and financial exclusion of legitimate customers. Yet the practice continues, driven by two fundamental economic pressures that have nothing to do with your business's actual risk profile.
The compliance cost calculation
Financial crime compliance across EMEA costs organizations approximately $85 billion annually. For traditional banks, the math is simple: serving crypto businesses requires specialized expertise, enhanced monitoring, and ongoing due diligence. As a result, it's cheaper to reject the entire sector than to build the infrastructure needed to serve it properly.
The regulatory capital burden
New EU regulations impose a 1,250% risk weight on unbacked crypto assets such as Bitcoin and Ethereum. This isn't a compliance requirement; it's a capital penalty that makes crypto exposure commercially unviable for traditional institutions, regardless of the actual risk individual clients present.
In the UK, approximately 90% of crypto firm registration applications have been rejected or withdrawn, often citing inadequate AML controls. Whether those assessments are accurate or not, they've created the perfect justification for blanket rejection policies.
The result? Compliant businesses are being treated the same as bad actors; not because of what they've done, but because of the sector they're in.
The Real Cost of Financial Exclusion
Financial exclusion isn’t just an hiccup; it creates tangible operational barriers that ripple through every part of running a crypto business.
Firms that have secured MiCA authorization, built robust compliance programs, and met regulatory requirements can find themselves locked out of basic banking services. Essential fiat on-ramps and off-ramps remain inaccessible, slowing payments, limiting growth, and complicating cash flow management.
Individual cases illustrate the problem vividly as well. Accounts are closed because a business receives a payment from a regulated exchange. Others are dropped with vague references to “commercial decisions,” offering no substantive justification. Founders frequently struggle to separate personal and business finances, as both are considered too risky to serve.
The irony is striking. By refusing service to compliant businesses, traditional banks aren’t mitigating risk; they’re amplifying it. Forced to operate through less regulated channels, these legitimate firms face higher operational and compliance risks, slower transactions, and reduced investor confidence. Over time, this slows innovation, and raises the cost of doing business for firms that are legally and technically sound.
Debanking Beyond Europe: U.S. Crypto Firms Face Their Own Challenges
Limited access to banking services isn’t exclusive to Europe. Leading firms in the U.S. crypto industry have faced numerous challenges regarding the banking blockade. Alex Konanykhin, CEO of Unicoin, described repeated account closures by major banks such as Citi, JPMorgan, and Wells Fargo, noting that access was cut off without explanation. Unicoin’s experience echoes a broader sentiment among crypto executives who argue that traditional financial institutions remain wary of digital asset businesses despite recent policy shifts toward a more pro-innovation stance.
Jesse Powell, co-founder of Kraken, has also spoken out about being dropped by long-time banking partners, calling the practice “financial censorship in disguise.” Caitlin Long, founder of Custodia Bank, recounted how her institution was repeatedly denied services. Gemini founders Tyler Winklevoss and Cameron Winklevoss shared similar frustrations.
These experiences reveal a pattern many in the industry interpret as systemic risk aversion. Even in a market as large and mature as the United States, crypto-focused businesses continue to encounter obstacles in maintaining basic financial infrastructure. The issue became especially acute after the collapse of crypto-friendly banks such as Silvergate, Signature, and Moonstone; institutions that once served as key bridges between fiat and digital assets. Their exit left a gap few traditional players have been willing to fill.
Why Tap Exists
The crypto industry has reached an inflection point. Regulatory frameworks like MiCA are providing clarity. Institutional adoption is accelerating. The technology is proven and tested. But the fundamental infrastructure gap remains: access to business banking that actually works for digital asset businesses.
This is precisely why we built Tap for Business.
We provide business accounts with dedicated EUR and GBP IBANs specifically designed for crypto companies and businesses that interact with digital assets. This isn't a side offering or an experiment, it's our core focus.
Our approach is straightforward
We built our infrastructure for this sector
Rather than retrofitting traditional banking systems to reluctantly accommodate crypto businesses, we designed our compliance, monitoring, and operational frameworks specifically for digital asset flows. This means we can properly assess and serve businesses that others automatically reject.
We price in the actual risk, not the sector
Blanket rejection policies exist because they're cheap and simple. We take a different approach: evaluating each business based on their actual controls, compliance posture, and operational reality. It costs more, but it's the only way to serve this market properly.
We're committed to sector normalization
Every time a legitimate crypto business is forced to operate without proper banking infrastructure, it reinforces outdated stigmas. By providing professional financial services to compliant businesses, we're helping demonstrate what should be obvious: crypto companies can and should be served by the financial system.
It isn't about taking on risks that others won't. It's about properly evaluating risks that others refuse to understand.
Moving Forward
The industry is maturing. Regulatory clarity is emerging. Institutional adoption is accelerating. But you can't put your business on hold while traditional banks slowly catch up to reality.
That's not sustainable in the long run.
As a firm, you shouldn't have to beg for a bank account. You shouldn't have to downplay your crypto operations just to access basic financial services. And you certainly shouldn't have to accept that systematic exclusion with little to no explanation other than “It’s just how things are."
The crypto sector is building the future of finance. Your banking partner should believe in that future too. If you're ready to work with financial infrastructure built for your business, not in spite of it, here we are.
Talk today with one of our experts to understand how we can help your business access the banking infrastructure you need.
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After its launch in 2020, Yearn.finance (YFI) quickly became one of the fastest-growing DeFi projects, attracting over $800 million in digital assets in its first month. In eight months, the total value locked (TVL) on the platform had grown to $1 billion. Yearn Finance offers a range of lending and trading services that provide impressive earning potential for crypto asset holders.
What is the Yearn Finance platform?
Yearn.finance (YFI) is a decentralized finance platform consisting of a group of protocols built on the Ethereum blockchain. These protocols allow users to maximize their digital asset-earning potential through staking, lending aggregation and yield generation services.
The aim of the Yearn Finance project is to make DeFi (decentralized finance) trading less complicated and more accessible to less technically-minded traders. The platform utilizes automation to allow traders to maximize profits from yield farming.
Yearn Finance consists of four core products:
- Earn – establishes the highest interest rates that users can earn from lending crypto assets.
- Zap – groups together several trades in one click, reducing costs and labor.
- APY – comprehensive data table that analyzes interest rates across various lending protocols.
- Vaults – investment strategies developed to yield the highest returns from other DeFi projects.
Through locking supported cryptocurrencies in Yearn Finance smart contracts integrated into the Curve DeFi and Balancer trading platforms, users earn YFI tokens and can engage in yield farming practices. The more crypto assets that users lock into these protocols, the more tokens they receive.
In order to operate efficiently in a decentralized manner, Yearn Finance built an impressive system of automated incentives rewarding participants who act in accordance with the outlined governance proposals with its YFI tokens. These proposals are voted in by YFI holders.
Who created Yearn Finance (YFI)?
Yearn Finance was launched in February 2020 by a prominent contender in the crypto space, Andre Cronje. Cronje led the launch of the platform having received no funding or reserving any tokens for himself, an exceptionally rare occurrence in the crypto assets and DeFi projects space.
On top of that, he also holds important roles at smart contract ecosystem Fantom and CryptoBriefing - a premier go-to resource for anyone interested in Initial Coin Offerings (ICOs) or crypto media.
How does the Yearn Finance (YFI) platform work?
Yearn Finance offers users custom-built tools that act as an aggregator for other DeFi projects such as Aave, Compound, and Curve DeFi trading platforms.
Built on the Ethereum blockchain, Yearn Finance deploys contracts on other compatible decentralized exchanges such as Balancer and Curve to maximize the earning potential for its users.
These contracts can be categorized into the four core products mentioned above, with most of the platform's services centered around lending or trading digital assets, and generating a passive income.
Earn
The earn product acts as a lending aggregator and searches across a selection of reputable different lending protocols to find the best interest rates, allowing users to tap into the best rates when lending cryptocurrencies. Users can then deposit USDT, USDC, DAI, sUSD, or TUSD into liquidity pools directly through the Yearn Finance platform to tap into those interest rates.
Zap
Saving time, costs and transaction fees, the zap product allows users to conduct several transactions in one click. For example, a user can trade DAI for yCRV in one smooth movement, as opposed to several transactions on other DeFi projects.
APY (annual percentage yield)
Aggregates the earning potential on an annualized basis based on how much capital is invested by searching across the various lending protocols utilized by the Earn product.
Vaults
The more complex of the services offered by Yearn Finance, the Vaults product allows users to tap into active investment strategies designed by the platform's own self-executing code. These essentially work as actively managed mutual funds with Yearn Finance being the financial intermediary.
Users looking to engage in this product, noting that it is still in experimental stages, would need to have some technical know-how to investigate how these strategies work as they are presented in Solidity (a smart contract-orientated programming language). Utilizing the product, however, is less complicated, simply requiring users to deposit USDC or DAI in each strategy which then invests the funds in various liquidity pools.
What is the YFI token?
Launched in July 2020, the YFI token is based on the ERC-20 token standard and operates as a utility and governance token across the ecosystem. While anyone can make a proposal, only YFI holders are able to vote on proposals put forward regarding the governance and future development of the platform. The higher one's YFI token holding, the more voting power the YFI holders have. A proposal requires more than 50% of the votes in order to be passed.
The maximum supply of YFI tokens was 30,000, however, YFI holders voted to increase this. Following the successful proposal, the total supply is now 36,666 YFI tokens.
Holders are able to earn YFI tokens through revenue received through fees charged on the platform. These are generated through the 0.5% fees charged for using the Earn feature and 5% for the Vault service. Users can also earn YFI tokens by providing liquidity on the platform.
How can I buy the Yearn Finance token?
Whether looking to actively engage in the yearn.finance (YFI) platform, other DeFi protocols, or simply acquire and hold the YFI token, Tap provides a simple and secure solution. Fully regulated and licensed, the Tap mobile app requires users to create an account and complete the account verification process in order to gain access to a wide range of vetted cryptocurrencies.
Once approved, users can buy, sell, store and trade the YFI token or any of the other supported cryptocurrencies from the convenience of their mobile phone.
Welcome to this week's Crypto Update, your go-to destination for the latest news in the exciting world of cryptocurrencies. Let's dive right into the highlights of the past week in the dynamic crypto market.
Etherscan's AI Tool for Smart Contracts:
Etherscan has launched Code Reader, an advanced tool that utilizes AI to retrieve and interpret source code from specific Ethereum contract addresses. Code Reader leverages OpenAI's powerful language model to generate comprehensive insights into contract source code files. The tool allows users to gain a deeper understanding of contract code, access comprehensive lists of smart contract functions, and explore contract interactions with decentralized applications. To access and utilize Code Reader, users need a valid OpenAI API Key and sufficient OpenAI usage limits. However, researchers caution about the challenges posed by current AI models, including computing power limitations, data synchronization, network optimization, and privacy concerns.
SEC's increased scrutiny on cryptocurrencies sparks debate:
The U.S. Securities and Exchange Commission's (SEC) increased scrutiny has led to a prominent debate concerning the future of XRP and Ethereum. Max Keiser, a well-known Bitcoin advocate, predicts the downfall of XRP and Ethereum due to regulatory overreach. In contrast, John Deaton, representing XRP holders, opposes this view, arguing for a more balanced regulatory approach. The cryptocurrency community is now anxiously awaiting regulatory clarity, as the SEC's actions remain unpredictable.
It's important to note that the regulatory environment is constantly evolving and can have significant impacts on the cryptocurrency market, including Ethereum. Therefore, it is advisable to stay informed about the latest developments.
A Call for Clarity: Federal reserve governor advocates for clearer crypto regulations:
Michelle Bowman, a Federal Reserve Governor, has urged global regulators to establish clearer regulations for emerging banking activities, particularly banking as a service and digital assets. She emphasized the need for a well-defined regulatory framework to address the supervisory void and uncertainties that financial institutions currently face. Bowman's call aligns with the growing demand for enhanced regulation of digital assets. A robust and comprehensive regulatory framework is crucial for ensuring the stability and integrity of the banking sector, mitigating risks, protecting consumers, and fostering innovation.
Turkish lira hit a record low against the US dollar
The Turkish lira hit a historic low, trading at 25.74 per US dollar, following Turkey's central bank decision to raise interest rates by 650 basis points to 15%. While the hike was expected, it fell short of the anticipated 21%, and analysts believe a larger increase was needed to show the government's resolve to fight inflation. The lira's devaluation has been part of a larger trend, prompting citizens to invest in alternative assets like digital currencies and gold. The central bank, now under new leadership, has adopted a more gradual approach to rate adjustments, seeking to stabilize the economy. However, the uncertainty surrounding Turkey's economic future persists.
Biggest Movers on Tap - Last 7 days
Freelancing is a popular career choice that has grown significantly in recent years due to the rise of the gig economy and the increasing availability of remote work opportunities. The freelance market is made up of self-employed individuals who work independently and provide their services to clients on a project-by-project basis.
This type of work provides a great deal of flexibility and control over one's own schedule, workload, and earning potential. However, like any career choice, freelancing has both ups and downs. Below we explore what a freelance career might look like, and provide tips on how to be your own boss and a successful freelancer.
What is the gig economy?
The gig economy is a labor market where temporary or flexible jobs are common, and independent workers work on a project or task basis rather than being employed by a company or traditional employer on a long-term basis.
This type of work is often conducted through digital platforms or apps that connect workers with clients who need their services. Freelance platforms include the likes of Upwork, Fiverr, and Freelancer.com for instance.
Gig economy jobs can range from driving for ride-hailing services to performing freelance writing or design work. The freelance business allows individuals to work when and where they want, providing them with a great deal of flexibility and control over their work schedules, essentially making them their own boss.
However, it also comes with challenges such as a lack of job security, no benefits or protections, and potential fluctuations in income. While freelance work sounds attractive, it’s important to consider the skill set needed and whether the ups outweigh the downs in relation to your specific needs and wants.
Being realistic about freelancing
The freelance business has gained a reputation for offering a very attractive lifestyle, but it still takes work and requires a number of skills and commitments that you, and you alone, will need to front.
Organization skills
For a successful freelancer, being organized and managing your time effectively is crucial. This means staying on top of your tax obligations, keeping your documents in order, and ensuring that you meet all deadlines.
Multitasking
In addition, multitasking is a necessary skill for most freelance workers, as you'll likely have to juggle multiple projects simultaneously. This requires effective task prioritization and the ability to switch between different topics seamlessly.
Strong communication
Good communication skills are also essential for success, as you'll need to handle difficult clients and know how to ask for guidance when needed. Effective communication is also crucial to a successful freelance career as you will likely need to take the initiative and approach potential clients for work. Promoting your skills and putting yourself out there also requires courage and self-confidence.
Self-discipline
Perhaps the most crucial for a freelancer freelancing in this day and age is self-discipline. No matter what line of work you pursue, you'll need to stay focused and avoid distractions while working independently, whether it's the temptation of a nap or a social interaction.
The freelance lifestyle may sound flexible, but in reality (more often than not) it is still a full-time job as you are essentially running your own business.
Handle criticism
Being able to handle constructive criticism is an important trait for freelancers, as you'll often need to accept and respond to feedback that isn't always positive. Remember, even talented freelancers producing high-quality work receive negative feedback.
Self-motivation
Being self-motivated is key when working as a freelancer, as you'll be responsible for managing your own work schedule and meeting deadlines without the guidance of a manager. If you prefer a more social work environment, freelancing may not be the best fit for you as it often involves working independently.
Financial resilience
Finally, new freelancers should be prepared to have a certain level of financial resilience as there can be uncertainty about when their next paycheck will arrive. When they start freelancing, quiet periods of contract work can be anxiety-inducing for some people.
The upside of freelancing
On the positive side, freelancing allows individuals to work from anywhere, giving them the flexibility and autonomy to balance work and personal life.
One of the primary advantages of freelancing is the ability to take control of your work schedule. You have the freedom to choose when and where you work, making it much easier to balance your professional and personal commitments.
Freelancers having the freedom to select their own projects means that they have a great deal of control over the type of work they do, far more than a regular job. You can choose to work on projects you enjoy and are passionate about, and have the ability to set your own rates and choose clients that align with their values.
Additionally, freelancers have the potential to earn more money than traditional full-time employees as they have the ability to work with multiple clients simultaneously and charge higher rates for their specialized skills.
Another benefit is that your earnings are directly related to your effort and the quality of your work, which gives you a real sense of achievement that you might not feel working in a traditional office environment.
When done right, freelancing can offer a great deal of professional and personal fulfillment. Before you start full-time freelancing, however, be sure to understand the bigger picture of what is required.
The downside of freelancing
One of the most significant challenges for many freelancers is that it can be financially unpredictable, as one's income can fluctuate from month to month, paired with a lack of job security. Additionally, there are no paid vacation days, sick leave, or other benefits that traditional employees enjoy.
As a freelancer, you'll need to ensure that you're always available to communicate with your clients, which can require a certain level of flexibility. On top of that, freelancers might also need to continuously search for new clients and projects on online marketplaces to maintain their income.
If you venture into the world of freelancing, it’s important to note that you will also be responsible for all administrative tasks, including accounting, invoicing, tax obligations, and chasing payments, which can be time-consuming and require a great deal of attention to detail.
Another issue is the isolation that can come with working independently, as freelancers often work from home or their local coffee shop and may not have the same social connections as traditional employees.
Overall, freelancing can be a rewarding career choice, but it requires a significant amount of self-discipline, motivation, and business acumen to be successful. It's important for individuals considering freelancing to weigh the benefits and drawbacks carefully before making the leap.
If you’re unsure whether freelancing is for you, consider slowly taking on one or two freelancing jobs while still working your traditional 9-5. This way you can test the waters with first-hand experience and see if this is something you would like to pursue full-time.
10 steps to kickstart your successful freelancer career
If you’ve decided to take on a slow transition or full-time shift to freelancing, we’ve put together these 10 steps for you to take in order to build up your portfolio. From finding work on freelancing websites to managing the workload and establishing pricing, here are the tools you’ll need to build your freelance business.
Step 1: Find your first job
Freelance work can be found through online freelancing platforms, which are a popular option for both freelancers and clients, with recent data showing that 75% of freelancers find work this way. Explore the various freelancing platforms and find which one best caters to your needs.
Step 2: Build a portfolio of freelance work
To create a successful freelance profile, it needs to make a strong impression and showcase your skills, experience, and personality to potential clients. Consider taking on smaller projects in the beginning that will display your skill set to gain experience. The more you can show, the more interest you can attract.
Knowing which freelance projects to take on and how to write a winning proposal can be crucial in securing steady work and building a reputation in the industry.
Step 3: Establish your pricing formula
One of the most common questions that freelancers have is how to price their work, as it can be challenging to balance fair compensation with the risk of losing clients to competitors.
There is a fine line between overcharging and scaring away potential business and selling yourself short. Use trial and error to figure out specifically where your skill set lies, and don’t be afraid to check out what other freelancers offering similar skills are charging.
Remember: Your work is valuable, and your expertise, experience, and dedication deserve to be rewarded.
Step 4: Discuss the job parameters with the client before beginning
Before starting work on a project, it's important to discuss and agree on details with the client, including deadlines, the scope of work, and payment terms. This step is vital and should never be skipped.
Be sure to understand what the client wants and effectively communicate your requirements before spending any time on the project you’ve just landed on.
Step 5: Manage client expectations
Freelancers need to manage client expectations and maintain a positive working relationship through effective communication and a clear contract. Always start on the right foot by being polite, assertive, and transparent.
Each client will be different so ensure that you navigate these relationships in a tailor-made manner. Ideally, you want to establish a strong client relationship and meet (or hopefully exceed) their expectations.
Step 6: Manage your time effectively
You’ve landed the job, now it's time to do the work. Time management is key to productivity and success as a freelancer. Ensure that you are scheduling work during productive hours, using time-tracking software if necessary, and effectively using your time to balance the workload of multiple projects.
Take the time to explore various tips and tricks for managing your time between projects, and build a winning formula that works specifically to your needs. The primary goal here is to maximize your productivity.
Step 7: Get paid
Getting paid as a freelancer can involve choosing the right payment options, dealing with fees and invoicing, and learning the best course of action for receiving international payments. Tap provides a winning formula that caters to both crypto and top fiat currency payments.
Unfortunately, this is also the time to learn how to address and handle non-payment issues.
Step 8: Manage your finances
Freelancers need to manage their finances carefully, as income can vary and benefits and tax obligations are the sole responsibility of the freelancer.
Be sure to stay up to date with policies like health and disability insurance, and learn about investing and passive income solutions for retirement and other savings goals.
Step 9: Level up your freelance career
As a freelancer, there are many opportunities to grow your career and income, such as becoming an agency with other people working under you or teaching others your skills and experience through online courses.
Step 10: If in doubt, start small
It's possible to balance freelancing with a day job, but it takes planning, determination, and persistence to make it work. This is also a great way to test the market and see if the freelancing life is for you.
How to navigate the freelance business as a newbie
Now that you have a clear understanding of what freelancing entails, and a to-do list of steps to take to pave your new career path, below are some tips for anyone starting out or looking to become a freelancer. These will come in handy as you navigate the space and ensure that you don’t sell yourself short.
Be selective about what jobs you take
To showcase your skills and present yourself as an expert, it's important to choose freelance projects that align with your skills and interests, rather than accepting every job that comes your way.
Establish a good pricing formula
Finding the right pricing balance can be tricky - charging too little can make you appear less experienced while overcharging can lead clients to seek out more affordable options. Researching market rates can help you find the right pricing balance.
Keep checking in with clients
Following up with clients after completing a project can lead to more work and strengthen your professional relationship. Consider suggesting additional projects that could benefit the client's business and make a note to check in again in a few months.
Always get a signed contract before starting
Before starting work on a project, always ensure you have a signed contract that outlines the obligations on both sides, including payment terms. Although it may feel awkward to request a contract, it can save time and hassle down the line.
Outsource administrative tasks if necessary
Administrative tasks such as invoicing, accounting, and tax management are important but can be time-consuming.
Consider delegating or automating these tasks to free up more time for paid work. Several millionaires interviewed in a study said that one of their keys to success was recognizing their weaknesses and delegating accordingly.
Structure your day
To manage your time effectively, create a routine that allows you to balance work and other commitments. Scheduling work during your most productive hours and avoiding leaving work until the last minute can help you maximize productivity.
Stay motivated
Freelancing can be challenging at the beginning, but it's important to persevere and not give up. With experience, you'll gain more confidence and find it easier to secure work and manage your business.
Best of luck with your new venture if you decide to start freelancing.
Kyber Network was launched in 2018 with the aim of being the main liquidity hub for the DeFi space. KyberSwap is the platform's interface, a decentralized exchange (DEX) aggregator that provides convenient and secure value exchange within the crypto market. Overall, the Kyber Network platform provides a smooth token-swapping experience while boosting earnings for liquidity providers.
What is Kyber Network (KNC)?
Kyber Network is a decentralized multi-chain liquidity hub that provides instant, secure transactions on any decentralized application (dapp). Its main goal is to provide deep liquidity pools that offer the best rates for DeFi dapps, decentralized exchanges (DEXs), and other users. Kyber Network is built on the Ethereum blockchain and makes use of intricate smart contracts.
KyberSwap is its flagship DEX aggregator and liquidity platform. KyberSwap sources liquidity from multiple DEXes to provide the best swap rates for traders in DeFi. KyberSwap is decentralized and permissionless, allowing users to conduct transactions on any of its supported 12 chains, including Ethereum and Binance Smart Chain.
Kyber Network seeks to solve the liquidity issue in the DeFi industry by allowing developers to build products and services using the platform's protocol, while KyberSwap acts as the trustless trading platform that also provides rewards for liquidity providers. With over $1 billion in total volume from over 1 million user transactions, Kyber Network is a growing player in the DeFi space.
Kyber Network's governance structure is managed by holders of its native Kyber Network Crystals (KNC) token through a decentralized autonomous organization (DAO) called KyberDAO. This allows KNC token holders to have a say in the network's decision-making processes and contribute to its development and growth.
Who created Kyber Network?
Kyber Network was founded by Loi Luu, Victor Tran, and Yaron Velner in 2017. The project created 226 million KNC tokens, most of which were sold to buyers and investors during its initial coin offering. This raised Kyber Network 200,000 ETH (roughly $50 million at the time) to launch the platform. The protocol went live on the Ethereum blockchain in February 2018, with Vitalik Buterin as an advisor.
In October 2017, the Kyber Network burned over 10 million KNC tokens, bringing the maximum supply down to roughly 215 million KNC.
Victor Tran is the current CEO of Kyber Network, while Loi Luu is the current Chairman. Yaron Velner stepped down as CTO in October 2019 but remains as an advisor. The Kyber team has over 50 employees globally, and its headquarters is in Singapore, with a large presence in Vietnam.
How does Kyber Network work?
Kyber Network is a decentralized protocol that enables users to instantly trade tokens without intermediaries. KyberSwap is the user interface for Kyber Network, with two protocols: Classic and Elastic.
Classic features the Dynamic Market Maker (DMM) protocol and the Amplification (AMP) programmable price curve. Elastic is a tick-based AMM (automated market maker) with concentrated liquidity, allowing liquidity providers to specify the price range for adding liquidity and earn fees for swaps processed at a specific price.
KyberSwap also has features like the Reinvestment Curve, multiple fee tiers, JIT Protection, and liquidity mining farms. The Kyber Network aggregates liquidity from various sources into a single liquidity pool on its network, and anyone can provide liquidity. The protocol is integrated into dApps (decentralized applications), DeFi (decentralized finance) platforms, and crypto wallets, enabling users to utilize any Kyber Network-supported token and allowing platforms to receive payment in their preferred token.
The Kyber Network protocol relies on reserves to provide liquidity for its decentralized exchange platform, KyberSwap. When a user initiates a trade, the platform searches for available reserves to find the best available rate being offered by takers.
There are three main types of reserves: Price Feed Reserves (PFR), Automated Price Reserves (APR), and Bridge Reserves. PFRs use price feeds to calculate conversion rates using smart contracts acting as an alternative to market makers, APRs provide rates for available crypto assets through smart contracts, and Bridge Reserves access other decentralized exchanges to deepen liquidity.
Previously, reserves were required to participate in the Kyber protocol by staking KNC to pay for network fees, but a recent upgrade removed this requirement, making it easier for reserves to participate. Kyber Network collects fees in ETH, with a portion of them going to reserves based on the amount of liquidity they provide.
The reserves model is a critical component of KyberSwap, enabling the platform to offer fast and competitive token trading services to its users.
What is the Kyber Network Crystal (KNC) token?
Kyber Network Crystal (KNC) is the native coin for the platform and acts as both a utility and governance token. Users can stake it to vote on upgrades and policies or delegate their tokens to other validators and earn a portion of the block reward.
Users who stake KNC receive rewards in ETH, and network fees paid in KNC will be burned over time, gradually reducing its supply. KNC holders can participate in the DAO and governance proposals by staking their assets or delegating their vote.
They can also earn liquidity-mining rewards by staking their tokens in eligible Rainmaker farming pools or participating in various activities such as Trading Contest, Gleam Giveaway, and AMAs.
How can I buy KNC tokens?
Tap's mobile app offers a user-friendly platform for users to purchase, trade, and safely store Kyber Network's KNC token in an integrated wallet. The app supports a variety of cryptocurrencies and fiat currencies, which can be used for buying and selling KNC tokens. The app also makes use of a smart router which finds the best Kyber Network price at any given time.
Additionally, users can securely store not only KNC tokens but also other digital assets on the app. Downloading the Tap mobile app provides users with access to verified cryptocurrencies and fiat wallets, allowing them to take advantage of a wide range of investment opportunities.
Index funds are an increasingly popular form of investment that offers investors a low-cost, passive way to gain exposure to a broad range of assets. With minimal management fees and no need for active trading decisions, index funds can provide investors with higher returns at lower costs than more traditional forms of investing.
What is an index fund?
An index fund is a type of mutual fund or exchange-traded fund (ETF) composed of a basket of stocks or bonds that tracks a specific stock market index such as the S&P 500 or Dow Jones Industrial Average. These might also be referred to as index mutual funds.
Unlike actively managed funds, which attempt to beat their respective benchmarks through security selection, index funds strive to replicate their underlying market indexes by holding all (or substantially all) of their components in similar proportions.
This makes index mutual funds more cost-effective than actively managed funds since they incur fewer trading costs and require less research and fewer management fees. On top of that, since they track established indexes, investors can benefit from the diversification within the asset class without having to pick individual stocks themselves.
Index funds provide an easy way for investors with any level of experience or resources to access some of the market's best-performing assets at a minimal cost. Index mutual funds are also favored for long-term investment strategies such as retirement funds.
How do index funds work?
Index funds, also commonly referred to as "indexing", follows a passive form of investing (unlike traditional mutual funds that are typically actively managed funds). Instead of fund managers actively trading a variety of stocks, index funds are built by mirroring the securities of a particular index and holding them.
The key notion is that by mirroring the profile of the index or stock market, the fund will match its overall performance. For example, over the last thirty years, the S&P 500 has grown an average of 10.7% per annum, which its index mutual fund will mimic.
While the most popular index fund tracks the S&P 500, other prominent index mutual funds include:
The Bloomberg U.S. Aggregate Bond Index
Which tracks the bond market.
The MSCI EAFE Index
Which tracks foreign stocks in Europe, Australasia, and the Far East.
The Dow Jones Industrial Average (DJIA)
Which tracks 30 large-cap companies listed on the stock exchange.
The index fund portfolio holdings will remain as is unless there is a significant change in the market's benchmark index. Benchmarks are used to measure the performance of the market indexes and will influence whether any changes to the composition of the portfolio need to be made. If changes are necessary, managers will rebalance the percentage of securities as necessary.
Passive vs actively managed funds
Both mutual funds and index funds are great investments, however, they differ slightly in how they operate and the returns one can expect. As with any investment endeavor, investing involves risk.
Actively managed funds
An actively managed investment fund offers investors access to an experienced team of financial professionals or simply a fund manager who makes knowledgeable decisions about where and how to allocate the funds across asset classes. This generally enables larger returns than traditional passive investing.
Typically, many mutual funds are actively managed funds, however, it's best not to assume a fund is actively or passively managed simply based on the fund type. There are plenty of funds that break this rule, like actively managed exchange-traded funds.
The advantages of an actively managed fund are that it can earn higher returns and beat the market index. It's important to note that this is not a guarantee so it's best to check the history of the fund you wish to invest in beforehand and the performance of the team managing it.
It's also worth noting that when the mutual fund sells individual stocks it incurs fees and taxes which will affect the fund's performance. Investors are also required to pay a flat fee despite the performance of the actively managed mutual funds, which could result in the mutual fund underperforming the market index.
Passively managed funds
On the other hand, a passively invested fund mimics a market index and does not have a fund manager or team of fund managers making decisions on what and when to invest.
With passive funds, there are fewer decisions to be made and trades to execute, which allows for less effort and lower fees. Automating the bulk of a passively managed index mutual fund makes it much more cost-effective than paying professionals to determine when and what should be bought or sold.
Typically, an index fund will fall into this category as it does not require full-on management. Once the index on which it will mimic is established, the shares are purchased and the index fund continues with little to no input.
Index funds vs mutual funds
Investors looking to build a portfolio have two popular fund options: index funds and mutual funds. Both types of funds are created by offering diversification through a curated range of stocks and bonds and access to professionally managed investments, but there are some key differences between index funds and mutual funds that investors should be aware of before making their choice.
Index funds typically carry lower fees than mutual funds, but they also come with fewer features and tend to be more passive in nature.
Actively managed mutual funds on the other hand provide more flexibility when it comes to customization, as well as access to professionally-managed portfolios which may yield higher returns over time. Understanding how both index and mutual funds work will help investors make an informed decision about which type is right for them.
Is it worth investing in index funds?
Financial professionals will typically agree that index funds are a great way for investors to invest passively in the stock market. Not only do they require little input, but they also offer a low-cost option with a strongly diversified portfolio. Index funds also offer a good investment option for long-term investors.
However, it's important to remember that all investments come with risks, and individual financial situations can vary widely. Before making any investment decisions, it is highly recommended to consult a professional financial advisor who can assess your specific circumstances and provide tailored advice. Their expertise will help you make informed choices aligned with your financial goals and risk tolerance.
As we explore concepts within the investing world and the various available options, today we are looking into mutual funds to gain a proper understanding of what they are, how these are categorized, and what these actively managed funds could contribute to your investment journey.
What is a mutual fund?
A mutual fund is a type of investment vehicle that pools the money of many investors and invests it in stocks, bonds, or other securities. Mutual funds offer investors diversification, professional management, and economies of scale.
These actively managed funds also provide liquidity since they can be easily bought and sold through a broker or financial advisor. Mutual funds come with various levels of risk depending on their asset allocation strategy, with some being more conservative than others. Investing in mutual funds is a great way for individuals to access the stock market without having to purchase individual stocks themselves.
How can you access actively managed funds?
Investing in mutual funds is an easy and cost-effective way to diversify your portfolio, as they offer access to a wide range of asset classes. Mutual funds are professionally actively managed funds handled by fund managers who make decisions on behalf of the investors.
Accessing mutual funds is relatively straightforward, investors can buy mutual fund shares directly through a fund house or use the services of a financial advisor or online broker. The price will reflect the mutual fund shares' net asset value plus fees associated with the trade.
When one wants to redeem their shares, they will be worth the net asset value at the time plus any fees. The net asset value (NAV) of a mutual fund, more commonly referred to as its price, is determined by the total worth of all the securities held in the portfolio and divided by the number of outstanding shares.
Before investing in any mutual fund shares it’s important to understand the fees associated with them, such as management fees and sales charges, so that you can choose the best option for your needs. Mutual fund investing can be lucrative, but there are still risks associated.
The different types of mutual funds available
As with most investment options, there is never just one type. When it comes to mutual funds, there are roughly six different types that one can explore. Any interested mutual fund investor should become familiar with the following types:
1. Stock Funds
Also known as equity funds, stock funds are made up of stocks (publicly traded shares of a company). Stock funds allow mutual fund investors to invest in multiple publically traded companies, and effectively own a tiny piece of each. These stock funds are known to deliver the highest returns when compared to other mutual funds and have the greatest growth potential, however, they are also considered to be the most volatile.
Growth stock mutual funds, in particular, are known to grow at a faster rate than the rest of the markets. These are categorized by the companies' value, with small-cap funds incorporating companies valued below $2 billion, medium-cap funds $2-10 billion, and large-cap funds looking at companies valued at $10 million or higher.
These mutual funds can be further broken down into a number of categories, and offer a perfect means to diversify within the stock funds category:
Growth and Income Funds (Large Cap)
Aiming for slow and steady development, these calm-growth stock mutual funds invest in large-cap companies that have relatively modest rises and falls when compared to their smaller counterparts. As a result, mutual fund investors can be sure of long-term gains with minimal risk.
Growth Funds (Medium Cap)
A perfect medium between small-cap and large-cap funds, these mutual funds invest in mid-sized companies for moderate growth and volatility.
Emerging Market Funds (Small Cap)
These are the most volatile funds as they have the capability to offer massive profits or losses in a brief period. Investing heavily in up-and-coming startups with the potential for exponential growth is an integral part of these aggressive mutual funds.
International Funds
International growth stock mutual funds allow one to diversify their money even further and are composed of a variety of companies from across the world and differentiated by capital size. These mutual funds typically include the likes of international brands and market giants beyond the borders of a specific country.
2. Bond Funds
With bond funds, you have the option of investing in government or corporate bonds. Here, instead of buying a company's stock, your money is lent to governments and in return one earns interest. Unlike growth stock mutual funds which can be volatile and unstable in nature, bond funds offer steady returns and are known to provide consistent profits over time.
While bond funds err on the side of caution, it's important to remember that in order for an investment to be worthwhile it needs to grow at a faster rate than inflation. History shows that these types of mutual funds earn between 5-6% per annum, which should be evaluated against the inflation rates (typically 3-4%). While bond funds are a safe bet, one must consider whether they will generate wealth.
3. Index Funds
Index funds are a kind of mutual fund that seeks to match the performance of an index or certain segment of the market. Unlike most mutual funds which have their investments actively managed by professionals, index funds only buy the investments included in a specific index, a process known as passive management.
For example, the renowned S&P 500 index tracks the stock prices of some of America's leading businesses to measure their financial performance. Investing in an index fund of this nature allows you to invest in multiple companies at the same time.
While many investors believe index funds are more beneficial in the long run due to their lack of management fees, there is a plethora of professionally managed mutual funds that routinely surpass these. Not only this but investors who invest in mutual funds will always benefit from an experienced investment professional monitoring one's portfolio, making up for any additional costs with increased profits.
4. Income Funds
Those seeking regular income from their investments should consider mutual funds that focus on stocks paying dividends. Investors who opt for such a fund are not worried about the volatility of stock prices, instead, they're prioritizing receiving reliable small amounts of money from companies inside these mutual funds throughout the year.
5. Money Market Funds
Money market mutual funds provide investors with the opportunity to earn returns from loaning money out for short-term periods. Money market funds are typically loaned out to governments, banks, and companies that have contractual agreements in place to pay back investors within a year or less.
In comparison to bond funds, money market funds often fall short in terms of building wealth. For example, they typically pay an average return rate that is no higher than 3%, meaning your capital can actually decrease with time if inflation exceeds this level.
Money market mutual funds can act as a protective guard over one's cash. While it safeguards against any potential losses, its conservative nature also limits the chances of any significant growth.
6. Hybrid Mutual Funds
To ensure your investments are well-rounded and secure, hybrid mutual funds cleverly spread out the money across stocks (equity) and bonds (debt). Two common types of these intelligent funds include balanced funds and target-date funds. Investing with hybrid mutual funds offers returns in smaller time frames.
Balanced Hybrid Mutual Funds
Balanced hybrid mutual funds are investment funds that provide a combination of stocks and bonds, allowing investors to benefit from both the potentially higher returns of equities while also mitigating some of the risks with fixed-income investments.
These mutual funds typically have an asset allocation mix between 60% stocks and 40% bonds, but this can vary depending on the fund's objectives. Balanced hybrid mutual funds offer diversification within one single fund, making them ideal for those seeking to minimize their overall portfolio risk.
Similar to most mutual funds, these types of mutual funds are actively managed by experienced professionals who continually monitor market conditions in order to make adjustments when necessary.
Target-Date Hybrid Mutual Funds
Target-date hybrid mutual funds are a type of investment fund that combines both stocks and bonds to provide investors with the potential for higher returns while mitigating some of the risk associated with equities.
These mutual funds typically have an asset allocation mix that is based on when one plans to retire, allowing investors to benefit from diversification within one single fund. Target date funds can also be referred to as lifecycle funds.
Why invest in mutual funds?
Investing in mutual funds is a great way to diversify your portfolio and maximize your returns. Mutual funds are pools of money from several investors that can be used to purchase stocks, bonds, or other investments.
Most mutual funds allow investors to spread out the risk associated with investing across multiple assets instead of just one, reducing the volatility of your overall portfolio. Additionally, mutual fund managers have access to greater research capabilities than individual investors do which can help them identify profitable investments more quickly.
Overall, investing in mutual funds is an excellent way for individuals to benefit from professional management while also reducing their own risk exposure. Mutual funds are also recommended for long-term investment goals, particularly for retirement.