KuCoin, the new Binance, growing faster than a speeding bullet (potential to go up 5–10x by end of year)

Previously, I wrote about the potential of an exchange, COSS, with a 50% fee split allocation token, and its potential to go up 39x if the COSS exchange could grow as fast and efficiently as did Binance.

Unfortunately, after watching the exchange and its actors for some time, it became apparent to me (and many others) that the team was unable to move fast enough to succeed.

While doing this research, I came across a similar and frankly much more attractive project, KuCoin, that has all of the benefits of the COSS exchange (a 50% fee split allocation token), that was launched one month ago but already has more volume than the popular exchange Cryptopia.

KuCoin is moving fast indeed. It is listing new coins at breakneck speed, is already the 2nd most popular exchange for cryptoassets like Walton and Monetha, and it is going to be the first exchange to list RedPulse, NEO’s first ICO.

Currently, KuCoin is trading at around a market cap of $72m, which is 7x that of COSS, however it already 8x more trading volume on its exchange than COSS.

Currently daily volumes of KuCoin are around $4mm. The exchange charges 0.1% to both the maker and taker. Assuming no growth, that would mean that $1.4b in yearly trading, and $2.9mm in yearly trading fees. 50% of this gets distributed to token holders (tokens outstanding: 91,043,076), essentially receiving 2% annualized dividend on the token (at the current token price of $0.80/token).

Assuming the exchange gets to the size of Binance (and it just might, the current growth has been astounding), that would be $100m/day in trading volume, aka $36.5b/year. The exchange would collect $73mm in fees/year, giving half to token holders, and each token would receive an approximate 50% dividend (still, at current price of $0.80/token).

If the token rose in value until investors accepted a 5-10% dividend on each token, the token value would rise to $4-$8 (a 5–10x return from its current price).

Also, KuCoin will take a percentage of quarterly profits and buyback and burn tokens from the circulating supply. They have already done one burn, reducing the supply from 100mm to ~91mm.

I have abandoned my COSS investment and am fully invested (and excited) for the future of KuCoin. You can look at my article on the power of the 50% fee split allocation as a driver for exponential growth in my COSS article, and apply those principles to KuCoin.

Good Luck