What is KuCoin Token?

kucoin token

KuCoin Token is native to an innovative cryptocurrency exchange platform that was created in 2017 based on blockchain technology. The KuCoin platform has its own native utility token, known as KCS – the KuCoin Shares token. KCS allows users to participate in the growth of the exchange and enjoy a range of benefits – including discounts on trading fees, higher withdrawal limits, and exclusive voting rights. KCS tokens can be used to purchase a variety of digital assets on the platform and will also serve as the native token of KuCoin’s DEX. 

Key Takeaways

  • KuCoin Token (KCS) is a cryptocurrency that is issued by the KuCoin exchange.

  • KCS can be used to pay for trading fees on KuCoin, as well to participate in token buybacks and burns.

  • Holding KCS on the exchange gives users a daily bonus based on the trading fees generated by the exchange.

  • The value of KCS ties closely to the success of the KuCoin exchange.

KuCoin is a renowned global cryptocurrency exchange that provides an array of trading options to its 8 million consumers in 207 countries and territories. Not only does the platform enable traditional spot, margin, P2P fiat, futures trading and staking, but it also offers lending to its users. With a current rank of 3rd on CoinMarketCap, KuCoin has established itself as a reliable and easy-to-use exchange. Moreover, the platform’s native token KCS serves as an integral part of the entire KuCoin ecosystem providing rewards to holders as well as ecosystem developers. 

How does KuCoin token work?

KuCoin users can earn a portion of the daily exchange profits by holding and staking KCS tokens. The amount of paid dividends is directly proportional to the amount of KCS held. The platform’s transaction and trade volume determines the size of the rewards pool. As the exchange collects more trading fees, the rewards pool increases.

To clarify, holding a certain amount of KCS on KuCoin can entitle a user to a share of the trading fees collected by the exchange. For example, if an individual holds 10,000 KCS and the exchange generates 20 BTC in trading fees (or 0.1% of the daily trading volume), they would receive a daily payout of 0.001 BTC converted to KCS (calculated as 20 x 50% x (10,000/100,000,000)). These payouts are based on all token pairs listed on the exchange and are typically distributed in KCS, but may also be paid out in other altcoins. The payouts occur daily at 2:00 AM (UTC +8). They can take up to 24 hours for the user to receive.

To be eligible for the bonus, the requirements are:

  • The user must hold a minimum of 6 KCS for 24 hours.

  • The user has to activate activate their 2FA in their account

Holding KCS tokens also offers the benefit of discounted trading fees on the KuCoin exchange. To qualify for a discount, a user must hold at least 1000 KCS, which provides a 1% discount. The maximum discount that can be earned is 30% by holding 30,000 KCS. The discount rate calculates daily at 00:00 (UTC +8) based on the snapshot of a user’s KCS holdings.

What is KuCoin Token’s use?

KCS, the native token of the KuCoin ecosystem, serves multiple purposes on the platform. Users receive KCS tokens as dividends and use them to pay for trading fees with discounts of up to 80%. Holders can also utilize it for participation in token sales, LockDrop/BurningDrop on the Pool-X platform, and more. Additionally, holding KCS allows users to become KuCoin VIPs and access reduced maker and taker fees without requiring a large BTC trading volume. Furthermore, users can use KCS as a payment method for various services such as shopping, hotel reservations, and gaming equipment.

KuCoin Token Development

KuCoin Shares (KCS) were used to raise funds for the development of the KuCoin exchange. The initial coin offering (ICO) took place from August 13th to September 1st, 2017, and raised approximately $20 million in Bitcoin (BTC). A total of 100 million KCS went to exchange founders and private investors, and an additional 100 million sold during the crowdsale. The ICO price for each KCS was 0.000055 BTC or $0.197326.

The tokens issued during the first phase, intended for founders, were subject to a four-year lock-up period until September 2, 2021. Tokens that sold in the second phase, which include industry leaders and angel investors, stayed locked for two years until September 2, 2019.

The KCS smart contract underwent an upgrade in January 2021 to enhance its capabilities. It allowed for more engagement in the blockchain ecosystem, such as through DeFi and DEX. This upgrade is part of KuCoin and KCS’s roadmap for 2021-2023. They claim there will be more KCS-related products in the future. By the end of 2021, KCS will serve as the underlying fuel and native asset for KuCoin’s decentralized financial services.

KuCoin has stated that a major focus will direct on “Empowering KCS”. The goal is making KCS a highly valuable and diverse product, rather than just a simple token.

KuCoin Token FAQ

Who are the founders of KuCoin Token?

The KuCoin Exchange is a Singapore-based crypto platform established in September 2017. The company’s co-founders include Eric Don as COO, Jack Zhu as Marketing Director, John Lee as President of Business Operations, Kent Li as Operations and Maintenance Director, Linda Lin as Chief Legal Consultant, Michael Gan as CEO, and Top Lan as CTO.

What makes KuCoin Token unique?

KCS Bonus is what makes KuCoin Token unique – a mechanism that rewards KCS holders and KuCoin ecosystem builders. Users consider it as a way to earn passive income. Those who hold at least 6 KCS can receive a daily bonus from 50% of KuCoin’s trading fee revenue.

The amount of rewards depends on the KCS number held and the trading volume of the exchange. The recent estimated APR of KCS Bonus was reportedly above 30% .

Where do I buy KuCoin Token?

The easiest and most recommended way of buying KCS is via the KuCoin cryptocurrency exchange itself. The circulating supply and market cap of the coin determines KCS price. The highest price paid for KuCoin was $28.80 in December of ‘21.

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