KuCoin Shares Token (KCS) Review: An Exchange Token that Grants Daily Bonuses
|KuCoin Share Key Information|
|Name||KuCoin Shares Token|
|Available Discount||1% per 1000 KCS|
|Withdrawal fee||Varies Per Token|
|Website URL||Go to Kucoin.com|
|White Paper URL||Go to Kucoin Whitepaper|
The KuCoin Shares Token is a token for the Kucoin cryptocurrency exchange, an exchange based out of Hong Kong. The system allows token holders to profit from dividends received. The Kucoin Shares Token is part of an overarching goal of Kucoin to create a cryptocurrency exchange ecosystem where all users benefit as well as a platform that brings blockchain technology to people from all walks of life, or as Kucoin calls it, a People’s Exchange.
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The Kucoin Shares token is unique in that it enables users to earn income from simply holding the token. Kucoin allocates 40% of the platform trading fees to users who recommend other users. Another 50% is distributed to KCS holders.
Payouts to KCS holders are made based on the total amount of trading fees of each token at the end of the day and the volume of exchange for that token on that day. KCS holders who hold more KCS earn more bonus tokens. Users can then trade the tokens for other cryptocurrencies or use them to pay for trading fees in the future. However, these percentages of profits will be reduced in the future.
The remaining 10% of the profit will be used to buy back and burn tokens from the market each quarter. The total supply of tokens will be 200 million, but after the buy-back disposal it will remain at 100 million.
The Kucoin team also has many years of combined experience in blockchain and cryptocurrency. Michael Gan, one of the founders and now the CEO, was the technical expert of Ant Finance of Alibaba Group as well as a senior partner of companies such as MikeCRM, and KF5.COM. The current COO, Eric Don, was the CTO and senior partner of IT companies such as YOULIN.COM and KITEME.
The company recently signed a strategic partnership with HyperQuant.net to work together to develop HFT-algorithms and strategies based on artificial intelligence (AI) with listed coins.
How the KuCoin Exchange Works
While KuCoin Exchange does charge transactions fees for both trading and withdrawal, trading fees are only 0.1% of the asset purchases, and withdrawal fees adjust according to the cryptocurrency market performance. However, a permanent trading fee discount function was activated in October 2017. Holders of each 1000 of KCS receive a 1% discount of trading fees, with a maximum discount rate of 30%. The discount rate is calculated with a daily snapshot of user’s KCS holdings.
Sample of fee structure for Kucoin exchange
The major difference between the Kucoin exchange and other exchanges is that most of these fees are returned to the user, either through Kucion Bonuses or through Invitation Bonuses. Only 10% of the total transaction fees are retained by Kucoin.
The Kucoin exchange has a number of advantages, including: customer service available 24/7 via either phone, email or website; a vast array of assets; a top-notch team with many years of experience in blockchain and cryptocurrency; one-on-one consultative services for investment strategies and expedited customer service; high-level privacy, asset, and operational security according to bank standards; high-level throughput of 1 million+/second; withdrawals that are processed within seconds and deposits within 2 minutes, and long-term operation strategies to encourage more trading.
In addition, the Kucoin exchange technology is able to support an infinite number of cryptocurrency pairs. For now, this list includes ETH, BTC and USDT, trading pairs with multiple ERC-20 tokens, NEO, KCS, and LTC. New coins are being added continuously.
The KCS Token
The KCS Initial Coin Offering consisted of three stages. In the first stage, 70 million tokens were allocated to the founders. Next, 30 million went to the investors. The remaining 100 million were available on the Kucoin open exchange as of September 2, 2017.
The 70 million tokens allocated to the founders are subject to a four-year lockup period from September 2, 2017 to September 2, 2021. The 30 million KCS allocated to investors are subject to a two-year lockup period during the same time period.
The KCS Price History
The KCS token launch started in August 2017 with a total supply of 200 million tokens. The token launch price was 0.000055 BTC.
KCS peaked at $19.22 near the middle of January of this year.
How to Purchase KCS
At the present, you can purchase KCS only through the Kucoin exchange.
The token is available for purchase on Kucoin with the following coin pairs:
- Kucoin (Trade KCS with ETH on Kucoin)
- Kucoin (Trade KCS with USDT on Kucoin)
- Kucoin (Trade KCS with BTC on Kucoin)
- Kucoin (Trade KCS with NEO on Kucoin)
- Kucoin (Trade KCS with GAS on Kucoin)
- Kucoin (Trade KCS with CS on Kucoin)
- Kucoin (Trade KCS with BCH on Kucoin)
- Kucoin (Trade KCS with RPX on Kucoin)
How to Store KCS
You can only receive bonuses from the exchange if you store your KCS on the Kucoin exchange. As a result, Kucoin offers strict security according to traditional banking standards. All sensitive data and user data is stored on data encryption at a bank level. Multifactor dynamic authentication offers additional security. On the operational level, Kucoin has an internal risk control department and another risk department for operational processes.
It is important to remember, however, that storing cryptocurrency on any exchange still involves risks.
Your KCS can also be stored in any wallet that supports ERC-20 tokens such as Coinomi, MetaMask and Myetherwallet. For maximum security, however, you should store your CMT on hardware wallets such as Ledger Nano S and Trezor, although doing so will prevent you from receiving the bonuses that the Kucoin exchange has to offer.
How the Value of KCS May Steadily Increase
The dividends Kucoin offers to users gives them a strong competitive edge in the exchange market. It offers an incentive for users to continue to use the exchange and hold as many KCS as possible, especially with its maximum 30% trading discount. It has also grown quickly, obtaining over 300,000 user registrations in its first 3 months.
KCS also has a token burn policy which buys tokens each quarter to help curb inflation of the token.
This is in addition to other factors such as their 24/7 customer support, high performance engine for scalability, and low fee structure make it a token with a bright future ahead.
Future Aspirations of the Kucoin Exchange and KCS
The team and project started in May of 2017. By December of 2017, it had already launched over 50 cryptocurrency pairs and reached a daily exchange volume of 5,000+BTC.
Kucoin aims to list over 1,000 cryptocurrencies in its exchange by the end of 2018, with a daily exchange volume of 100,000+BTC. By June of 2019, its goal is to become one of the top 10 cryptocurrency exchanges in the world.