Review on KuCoin Shares by Fabrizio Zampieri
KuCoin is a Chinese cryptocurrency exchange based in Hong Kong (Chinese…
KuCoin is a Chinese cryptocurrency exchange based in Hong Kong (Chinese authorities ban) launched in late 2017. The exchange is translatable to 11 popular languages including English, Portuguese, Dutch, Mandarin, Japanese, German and Spanish. Trading is also made easy and only requires a few clicks after you’ve navigated under the markets tab located on the top of the screen.
KuCoin Shares (KCS) are the native currency of the KuCoin exchange platform that allows holders to profit from the success of the exchange. KuCoin takes into account the amount of KCS users hold when distributing the various coins. The more KCS you hold, the more dividends you’ll receive.This payout system enables users to receive passive income by just holding. However, while the company currently does share 50% of trading fee revenue with users, it’s important to note that the percentage paid to KCS holders from these trading fees is set to reduce in the future.
However, the project’s whitepaper gives a great explanation of how KuCoin Shares are distributed.
For every 1000 KCS you hold, you will receive a 1% trading fee discount with the maximum amount capped at 30%. For example, if you hold 20000 KCS you will receive a 20% discount, but holding 50000 KCS will max you out at a 30% discount.
While the total issuance amount of KCS was originally 200 million, the KuCoin team has decided to go through with a “buy-back” program that utilizes at least 10% of the net profit every quarter to buy-back KCS and destroy them until there are only 100 million KCS remaining.
KCS is an ERC20 token, meaning you can store it on hardware wallets that support the Ethereum blockchain.
Pros
- - Incentives bonus: KCS holders receive daily cryptocurrency dividends (50% of overall trading fee revenue). - Low fee structure and a trading discount for KCS holders and low withdrawal fees. - Exclusive KCS holder rights: higher ranking KCS users will receive one-on-one consultative services for investment strategies and expedited customer service. - A large number of digital coins traded (210) on the exchange and numerous trading pairs: BTC, ETH, NEO, USDT, KCS, BCH.
Cons
- - KCS is only able to be purchased on the official exchange site. Registration is simple, but you’ll need to deposit initial cryptocurrencies into your KuCoin exchange wallet such as BTC, ETH, NEO, and/or BCH to trade for KCS.
