Founded in September 2017, KuCoin is a Hong Kong based cryptocurrency exchange. I tried the platform last month and make use of it ever since. I deposited a small amount of Ethereum to test it out. So far trades have been as fast and smooth as the ones I’ve used. The team has done great work on it so far as the platform turns out into a comprehensive financial service platform. I brought some information underneath so you can see what KuCoin has to offer!
KuCoin Shares (KCS) is the native currency of the platform.
Total Supply: 171,850,451
Circulating Supply: 81,850,451
Current price: 0.00017733 BTC (as of posting) Market Cap: ~$95 million USD
What are the reasons to hold KCS?
• While they surely made major strides this past quarter, I acknowledge that KCS is still some distance away from its ATH last Jan, and I’m still mystified that that’s the case.
• KuCoin uses 10% of profits to implement the KCS buyback and burn, where KCS is purchased from the market and then burnt. I’d say their coin burn figures this past quarter and in the succeeding quarters to come will accelerate and contribute to improving the intrinsic value of KCS.
• The platform uses 50% of all trading fees earned to buy KCS from the market and then redistribute them to KCS holders who hold at least 6 KCS as a bonus.
For example: User Bob holds 10000 KCS in his account. Let’s say in March the average volume of the entire exchange per day is 10000 BTC, according to the current fee rate, the trading fee they collect per day is 20 BTC. So this user will get 20 * 50% * (10000/100000000) = 0.001 BTC per day, 0.03 BTC per month!
• I believe they care for KCS more than anything else. And whenever they have some new services/products, they think hard about how it can be associated with and benefit KCS. In their upcoming Public Chain this year, KCS will also play a very significant role.
• Within KuCoin, the function of KCS is as many as the exchange token in other channels, pay trading fees, get VIP rights, etc., and KCS also has plenty of use cases outside of KuCoin in traveling, gaming, financing, social networking, and other industries.
• KCS price is highly associated with the development of KuCoin, and with the continuous expansion of the KuCoin ecosystem, the business around KCS will gradually become ecological and the intrinsic value of KCS will be higher and higher.
KuCoin Exchange: Year in Review 2019
In 2019, despite the feared downtrend in the months of January and March, KuCoin has accomplished the platform’s upgrade (Kucoin 2.0). For me, given the fact that KuCoin significantly enhanced their API, introduced further order types, and strengthened protection frameworks, the services offered were virtually the same as the time they showed up in 2017. At the start of 2019, KuCoin is likely getting more matured than before:
• Launched their very own IEO platform “Spotlight”. Five promising blockchain projects raised a total of US $12.6 million.
• Launched their P2P OTC platform where users were allowed to purchase crypto with fiat.
• Following their crypto-to-crypto and P2P OTC platform, their futures trading platform KuMEX was officially launched. The launch of it probably complements their ecosystem, which allows them to provide a one-stop service to crypto investors. Moreover, the platform is worthy of being commendable as it was the first lite version of the Bitcoin futures platform made available on the KuCoin app.
• Although the “Staking” concept has long existed in crypto, the stable investment option that generates a healthy profit stands out in 2019. In just the second quarter of that year, KuCoin introduced Soft Staking service and the world’s first liquidity trading market Pool-X, aiming to solve the issue of conventional staking service’s inadequate liquidity.
• Providing a new tool to help amplify trading results of successful trades, KuCoin launched its Margin Trading service.
Future of KCS and KuCoin
With the successful expansion of KuCoin’s services and ecosystem, amid the crypto market recession due to the coronavirus, the management team still manage to proceed with their plan of enhancing the company structure and establish KuCoin Group.
As the former CEO and now heralded Chairman of the new group, Michael Gan leads KuCoin Global’s strategic vision and puts more resources into expanding the limits of blockchain technology with KuCoin’s upcoming Public Chain and KCS ecosystem. While Johnny Lyu, a guy with a strong technical background and has accumulated rich operational and business experience in his previous work and entrepreneurship, replaced Michael in his previous position to lead KuCoin Global.
New Bonus Plan for KCS
Regarding the current KCS bonus plan as was explained above, the platform decides to adjust the way they distribute the bonuses. While they cannot unveil too many details now but it is certain that the bonus of holding KCS will only be higher.
Imagine an exchange that has its own Public Chain, KuCoin in its current form could possibly attract more projects to build on its upcoming KuChain. Not just for the sole purpose of significantly expanding its ecosystem, the exchange will also be able to provide a better trading experience through its CEX and DEX traders. While Michael mentioned a small piece of detail from KuChain white paper in their official Telegram AMA, he mentioned sharing more of it within a month.
The way I see it, KuCoin has spared no effort in exploring diversified methods. Seeking innovative cooperation and offering users protection by establishing the best of centralized and decentralized trading solutions, the platform partnered with Arwen. Perhaps, with the upcoming KuCoin Chain, KuDEX is on its way and will also be available for trading.
Offering the aid of white-label solutions, KuCloud will render its partners with a golden opportunity to rapidly deploy and set up their own crypto exchanges within 72 hours. Provided with all of KuCoin’s lucrative features, including spot trading, margin trading, staking, fiat gateway to up to 150x leverage futures trading, KuCloud could help empower consumers with the most crucial step to maximize efficiency by reducing R&D input costs as well as time savings.
In light of all the service expansion, what significance does this look like for KuCoin and KCS?
It all started with a cryptocurrency exchange that has set out to keep trades fast and safe. Two years after, they were able to build a powerhouse from their ever-expanding services and community. As the recently concluded month shows amid the global market crisis, KuCoin proved it won’t flinch as it just continues to stand out. Always expect that KCS was, is and will play a significant role in KuCoin. From use cases and burn processes (afaik burned more than 10% of the total circulation) it will potentially help accelerate its intrinsic value to make it a CMC top 20 coin again!