Kucoin used to be one of the most popular tier-2 centralized crypto exchanges in the world. It had its own popularity, especially among Chinese and Asian crypto traders who love to trade altcoin to altcoin.
Kucoin’s popularity has been surpassed by some of the newer generations of crypto exchanges this year but it is still able to maintain hundreds of millions worth of daily trading volume.
Kucoin has a native crypto token called Kucoin Shares (KCS) which is quite similar to other crypto exchange tokens, such as Binance Coin (BNB) and Huobi Token (HT).
In this article, we will explain if it’s actually worth your money to invest in KCS. With the development of the Ethereum 2.0 and the DeFi boom, we still anticipate a bull run of altcoins with KCS being one of them before the year runs out.
Read more about the increasing popularity of Decentralized Finance (DeFi).
How Does KCS Work?
As mentioned above, Kucoin is an attractive crypto exchange for second-tier crypto traders. They used to be one of the go-to exchanges if you plan to trade lesser-known altcoins that you couldn’t find on Binance or Huobi. Kucoin had been able to stay in the top 10 crypto exchange rankings by trading volume for quite some time.
Although its popularity has now been surpassed by some other exchanges and even by AMM DEX such as Uniswap, its trading volume remains stable, and there are still many crypto traders who like to use KuCoin.
And in the center of it all, you have Kucoin Shares or KCS. This KCS is basically the native crypto token of KuCoin exchange. Even though it’s not technically “shares” that represent ownership of KuCoin, it still mimics the idea of shares.
Kucoin basically distributes half of the trading fee revenues to the KCS holders in the form of daily dividends. The more KCS you hold, the more daily dividends you are going to get.
On top of daily dividends, the Kucoin team also burns one-tenth of its profits every three months to buy back KCS from the open market. They will then use such activity to pump KCS token price. This policy is similar to how Binance operates and its relation to BNB or how other top exchanges do it.
Of course, the benefits don’t stop there. They also give you trading fees discounts if you hold KCS in your Kucoin account while you trade there. Basically, the more popular Kucoin is, the more benefits you will get as KCS HODLer.
The Future Of Kucoin Is The Future Of KCS
So, is it a good investment to put your money in KCS? Well, it depends whether you believe in the future of Kucoin or not. If you think Kucoin will keep going higher and will have more revenues in the future, it’s worth it to hold KCS.
However, if you think other altcoins provide better opportunities and higher ROI in the near future, you might want to invest elsewhere.
At the end of the day, the future of Kucoin decides the future of KCS. There’s no way for KCS to go higher than most other Alts if Kucoin itself is not really used by crypto traders.
For KCS to remain relevant and get its place in the top 50 crypto rankings, it must evolve, and it must try to adapt to the latest trend. As of now, Kucoin tries to attract the DeFi enthusiasts by informing them that Kucoin lists all the DeFi gems. However, that’s not enough.
Find out everything you need to know about DeFi Apps.
If Kucoin wants people to feel excited about it again, it has to try to adapt to the decentralized route. Kucoin should attempt to create a twisted and unique version of AMM DEX.
Otherwise, it will be hard for them to remain relevant in the future of cryptocurrency, despite the fact that it still has decent trading volume as of today. Kucoin also needs to accommodate Ethereum 2.0 upgrades once they go live.
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