Today, I want to de-mystify KCS a bit and maybe make it clear what's the purpose and benefits of this unique coin.
One of the reason this is important nowadays is because with Bittrex and NOW BINANCE! not accepting new accounts creation, KuCoin becomes one of the best alternative. I first got interested this exchange because they pay back to the users about 90% of their fees. That's damn awesome!!
Most of what I know it's from reading their whitepaper and interacting with people on various social media stuff. I believe all this info to be factual at the time of the posting but please double check the information in case you don't trust me.
I truly believe that KCS can be a coin you'll want to keep an eye on this year and you might get irrationally attached to it in the process. TRUE LOVE!!
What is KCS?
KCS is a ERC-20 token issues by the exchange KuCoin which serves a few functions:
- fee reduction
- distributing fees to hodlers
- offering various benefits and promotions for hodlers
KuCoin bonus is the daily distributed fee to the KCS holder on KuCoin exchange. Every day, 50% of the fees collected are "shared" between all KCS holders.
This video makes it all clear and simple and I highly recommend you watch it:
So here are a few important things that might be missed in all this.
There's a very good correlation between KCS and trading volume. When the volume was about 800 BTC per day, the KCS coin was about 50 ents. Now the volume is 8000BTC/day and the KCS is a whooping 7$.
Of course, 7$ sounds super high and it is true that looking at the graph it have shoot up like crazy so a dip/correction is coming. It might. But it also might not cause this coin is constantly being pushed up by trading volume. That's the key.
If the volume goes down, people will start to sell their KCS cause they get less dividends daily.
But the interesting thing about this is that right now, BINANCE has a volume of about 280.000 BTC daily. By comparation, KuCoin's volume is laughable..but also speaks of the immense potential to grow. If it doubles the KCS might got 15$ and stay there. It doesn't matter what BTC is doing as long as people trade, KCS delivers. It's beautiful and really, few shitcoins in this world have such a clear purpose.
Second important thing to know is that this nice huge bonus is going to dwindle stating from April. They will start to lower it by 1% for every 2.5mil$ in trading. While your total will still go up, it will go up lower than it would have otherwise went. This means that the correlation between trading volume and KCS value will break...again, after APRIL. But if you think the volume will keep going up until then, no reason not to think the KCS value will go up as well.
Check this photo to see how things change for KCS holders after April:
Thirdly, there are a lot of things that are still not quite clear. For example there is a plan to buy back KCS with 10% of the profit and burn, which will modify the total supply and again, favorably influence the price of KCS. Exactly when and how, nothing is clear but this is from the whitepaper:
After the Kucoin platform opened for use, at least 10% of the net profit will be applied to the buy-back of KCS every quarter. The KCS retrieved through buy-back will be destroyed immediately. The buy-back record shall be released to the public at the first time, so that users can review via blockchain explorer, to ensure the open and transparent nature of the whole process. We will continue our efforts in this regard, until 100 million KCS destroyed.
They also talk about all kind of benefits for KCS holder, from fee reduction to special treatment, vip support and other cool stuff. No clear info on any of that yet. This might be due to the fact that KuCoin is still very new and still scrambling to make everything work.
How likely is that the volume will go up?
In my opinion, given that their strategy is to add a lot of new coins that are not found anywhere else but have a strong community behind them and the fact that they are very ambitious and have as a goal to be a top 10 exchange in 6 months or less, I'd say the probability is rather high.
Right now, there's an immense opportunity for them as there are so many exchanges closed down so they might acquire a large number of new accounts..which will again drive the volume up.
In conclusion, I think this is an exchange that is worth being on and hodling KCS might be very profitable at least in the next 4 months or so. Please note that you must hodl them on KuCoin if you want to get the benefits, just in case this wasn't clear.
Join KuCoin <---- and by clicking here you use my referral which gives me a small part of the fees that otherwise go the exhange.