KuCoin's Into the Cryptoverse Report 2023 Uncovers Young Pakistani Crypto Investors Driving Market Expansion
KuCoin, the People’s Exchange and one of the top 5 global crypto exchanges, has unveiled the findings from our latest survey, revealing key insights and opportunities in Pakistan’s crypto market in 2023. Titled Into the Cryptoverse: Understanding Pakistani Crypto Investors 2023, the survey results offer a sneak peek into the current state of the crypto market and investor attitude toward cryptocurrencies in the country.
This is the 10th report published as part of KuCoin’s ‘Into the Cryptoverse’ series since 2022. The latest report indicates growing adoption and interest in assets among crypto investors in Pakistan.
Pakistan ranks 6th in Chainalysis’s 2022 Global Crypto Adoption Index, and the latest KuCoin survey results further cement the nation’s potential as a thriving crypto market. Here are some detailed insights from our study on Pakistan’s crypto market.
Pakistan’s Crypto Investor Profile
500 adult crypto investors aged between 18 and 60 participated in the KuCoin survey, and the results highlighted are based on their inputs. The survey was conducted between May 5 and May 12, 2023.
In the survey, 17% of internet users aged 18-60 identified themselves as crypto investors. This group includes users owning or owning crypto assets in the past six months.
Pakistan’s Growing Crypto Adoption
Gen Y (aged 26-39) and Gen Z (aged 18-25) formed the largest groups of crypto investors in Pakistan, accounting for 47% and 35% of respondents, respectively. Regarding economic backgrounds, 66% of investors have an annual household income of less than PKR 5 million.
Attitudes Toward Cryptocurrencies Turn More Favorable Among Pakistani Investors
Interestingly, 30% of the survey respondents started investing in crypto over the past three months, indicating a growing interest in this asset class. The timeline coincides with the depreciation of the Pakistani Rupee against the US dollar, which has recently lost as much as 20% of its value against the US dollar.
Around 36% of respondents entered the crypto market by making their first transaction within the past year. Only a small group, 15%, have been investing in the crypto market for over three years.
Pakistanis Start with Small Investments Into Digital Assets
A majority of the crypto investments made by Pakistanis range between low to moderate, with 40% of respondents having invested up to Rs. 30,000 (around $100) in the market. 48% of Gen Z participants have invested such amounts in the crypto market.
This could reflect a cautious approach toward cryptocurrency among Pakistani investors. It could also be driven by the limited availability of financial resources for investing in crypto assets.
Crypto Investment in Pakistan
On the other hand, 39% of Gen X have invested between Rs. 30,000 and Rs. 300,000 in the crypto market. Meanwhile, 32% of Gen Y investors have invested more than Rs. 300,000 (around $1,000) in the crypto market, indicating an interest in allocating more financial resources to cryptos in their portfolios.
Why Pakistanis Are Increasingly Investing in Cryptos
Most Pakistani investors (69%) are strongly upbeat about crypto’s future potential. Critical reasons for being motivated to invest in the crypto market among the survey participants include a belief that crypto will play a more significant role in the future (69%), make transactions more convenient (49%), help with wealth accumulation in the long run (44%), and become a store of value to safeguard against depreciation (33%).
Motivations of Crpyto Investment
Other reasons highlighted as drivers for investing in crypto include avoiding missing out on a popular trend (30%), getting rich overnight (23%), diversifying investment risks (22%), and because they think crypto is fun (14%).
Most Popular Use Cases for Crypto in Pakistan
Unsurprisingly, trading is the most common use case for why Pakistani users invest in crypto, as 46% of the survey respondents across all age groups indicated. However, the participants also believe in crypto’s long-term potential as an investment opportunity, with 30% believing in HODLing crypto and putting their crypto assets to work via yield-generating programs and staking activities.
Exploring Crypto Usage in Pakistan
29% of investors who participated in the KuCoin survey also highlighted crypto’s use as an efficient way to conduct P2P and cross-border transactions. There is also growing interest in using crypto to buy non-fungible tokens (NFTs) among 22% of respondents. However, Pakistani crypto investors had a relatively lesser interest in using crypto as a payment method to purchase luxuries and daily goods.
Other interesting use cases for crypto among investors in Pakistan include using crypto gift cards and crypto for gifting purposes. Around 10% of investors surveyed indicated receiving or paying salaries using cryptocurrencies.
Influencers Speak About the KuCoin Survey
As part of the report, crypto influencers in Pakistan have also offered valuable insights on their key takeaways from the KuCoin Cryptoverse survey and overall trends among Pakistan’s crypto investors.
Note: The above information forms the respective individuals’ personal opinions and does not reflect KuCoin’s position in any manner.
In conclusion, KuCoin is dedicated to deepening its comprehension of the Pakistani cryptocurrency landscape while promoting transparency, cooperation, and innovation throughout the international crypto community. By conducting insightful surveys, KuCoin enriches the industry’s collective understanding and plays a pivotal role in shaping the future of digital currencies. This, in turn, enables individuals to engage in the ever-evolving financial ecosystem actively.
Launched in September 2017, KuCoin is a global cryptocurrency exchange with its operational headquarters in Seychelles. As a user-oriented platform focused on inclusiveness and community action reach, it offers over 700 digital assets. It provides spot trading, margin trading, P2P fiat trading, futures trading, staking, and lending to its 27 million users in 207 countries and regions.
In 2022, KuCoin raised over $150 million in investments through a pre-Series B round, bringing total investments to $170 million with Round A combined, at a total valuation of $10 billion. KuCoin is currently one of the top 5 crypto exchanges according to CoinMarketCap. Forbes also named KuCoin one of the Best Crypto Exchanges in 2023. In 2022, The Ascent named KuCoin the Best Crypto App for enthusiasts.