KuCoin Token (KCS) was launched in 2017 as a utility token that allows traders to derive value from the KuCoin exchange. Five years down the line, the digital currency has become an attractive investment vehicle.
Are you considering investing in KuCoin’s exchange token? It is essential that you know the token properly and understand its place in the cryptocurrency market before venturing further.
So, what is KuCoin? What is KuCoin used for? What Makes KuCoin unique? We will answer these and other questions to help you gain a better understanding of what the token stands for, as well as how reliable it is as an investment vehicle.
What Is KuCoin Token (KCS)?
KuCoin Token is the native token of KuCoin, a cryptocurrency exchange headquartered in Seychelles. Also referred to as KCS, the KuCoin token is an ERC-20 token based on the Ethereum blockchain, compatible with several Ethereum wallets.
As the native currency of the KuCoin exchange, KCS serves as both the utility token and governance token of the platform. It powers all the products and services offered throughout the KuCoin ecosystem, including the recently launched KuCoin Community Chain (KCC).
KuCoin is a unique digital currency. It was the bedrock of the KuCoin exchange when it was launched in 2017 and it has powered the creation of several other products and services within its network. KuCoin is highly respected by investors because it grants holders dividend-like rewards. It is one of the best digital coins for individuals who want to earn passive income in cryptos.
A Brief History of KuCoin
Before we delve further into what makes KuCoin (KCS) a unique, useful, and attractive coin, it is important that we look at its history.
The origins of KuCoin date back to the early 2010s, when Michael Gan (CEO) and Eric Don (COO), two coding enthusiasts and early blockchain adopters, realized the revolutionary potential of Bitcoin and the broader implications of a decentralized financial system. Gan, who started coding at the early age of 8 and founded his first startup before turning 17, was surprised at the complexity of buying and selling BTC at Mt. Gox, the largest digital asset trading platform in crypto’s early days. Gan and his boss at the time, Eric Don, joined forces to create a platform that would make digital currencies accessible to more people and facilitate the transition to a new and equitable financial system. The pair produced the first lines of code of the KuCoin platform by the end of 2013, thus beginning the journey of the People’s Exchange.
Though work on the KuCoin platform started in 2013, it took the team 4 years to come up with a satisfactory and optimized version that went live in 2017.
To power the new exchange and advance its development, the KuCoin token (KCS) was launched through an Initial Coin Offering (ICO). The successful ICO saw the KuCoin team raise as much as $20 million in funds for the project.
KCS has been trading on major exchanges since the last quarter of 2017. It was initially designed to have a total supply of 200 million coins, but the team carried out a planned buyback and burning of the tokens to introduce deflationary pressure on the value of the token, similar to what Binance does with its periodical and real-time BNB burns. Initially, this was done quarterly but the team now burns KCS monthly.
What Makes KuCoin Token Unique?
There are thousands of cryptocurrencies at the moment. Uniqueness is one of the factors that distinguish the best digital coins from the average ones. KuCoin token (KCS) is unique in many ways.
As hinted earlier, KCS offers users opportunities to earn passive income. Through its unique incentive mechanism, KCS Bonus, KuCoin rewards KCS holders and ecosystem builders handsomely. Users only need to hold more than 6 KCS to receive daily dividends drawn from around 50% of daily trading fee revenue. The amount of reward invariably depends on the amount of KCS the user holds.
KCS also offers users trading fees discounts. However, this is available to users who hold at least 1000 KCS or more. 1000 KCS will get users a 1% discount while the maximum possible discount is 30%, which requires a minimum of 30,000 KCS.
KCS Burn – What Does It Mean?
KuCoin employs what is known as a deflationary mechanism to keep the price of KCS stable. This practice involves burning some amount of KCS from time to time to keep the circulatory supply in check. The KuCoin team buys back KCS with about 10% of the net profit.
In the past, the quarterly trading volume determined the amount of KuCoin tokens to be burned every quarter. Now, the monthly trading volume is used for estimating the amount to be burned per month. This keeps the KCS’s circulatory supply in check. It is expected that supply will keep decreasing until it eventually settles at 100 million KCS.
What Is KuCoin Token (KCS) Used For?
KuCoin token (KCS) has several Web3 and DeFi-rekated use cases. We will briefly discuss each of the major use cases individually in the sections below.
Utility Token
As stated already, KCS is a utility token. That implies that it has a number of use cases within the KuCoin ecosystem. It is primarily used to pay trading fees on the KuCoin exchange. The best part of making use of the coin on the exchange is that it qualifies users to enjoy discounts.
KCS is also the native digital currency of KuCoin Community Chain, which was launched in 2021. As the utility token of the ecosystem, it allows people to participate in token sales on the KuCoin Spotlight platform. It is also the key to participating in LockDrop/BurningDrop, which is a new Launchpool product on the Pool-X platform.
DeFi and Web3 Applications
KuCoin started as a normal crypto exchange but has expanded so much in just about five years. The launch of the KCC mainnet opened up several opportunities, and the KCS team is making the best use of these opportunities.
KCC is compatible with EVM and ERC-20 smart contracts. It offers high speed and low transaction costs, thanks to the use of the Proof of Staked Authority (PoSA) consensus mechanism. It is used to settle gas fees within the network, opening up opportunities for DeFi users to create and launch projects at cheaper costs.
KuCoin promotes decentralization and has become a notable promoter of the Web 3 concept. Already, the entire ecosystem integrates numerous web-3 technologies to offer more freedom and control to internet users, which is the ideal of Web 3.
It is important to also note at this point that KuCoin is working on Decentralized Identifiers (DIDs) to enable decentralized and verifiable digital identity. The team is also working hard on NFT ownership and management as well as metaverse-related projects.
Investment Vehicle
Like other cryptocurrencies, the KuCoin token (KCS) is used as an investment vehicle. This simply means that individuals can trade the digital currency for profits.
KCS is a volatile asset, which means its price rises and falls from time to time. Crypto traders can buy KCS as a digital asset and sell it when the condition is favorable. Generally, traders aim to buy when the price is low and sell when the price is higher.
Considering its price history, KCS has been an incredible investment vehicle. The ICO price was around $0.258803 but the price at the time of writing this piece was 14.29. The coin had previously reached an all-time high price of $28.83 per token.
Anyone can trade or invest in KuCoin tokens. It is ideal for both day-traders and HODLers.
Global Payment Solution
The KuCoin token is also widely used for payment purposes within its ecosystem and compatible blockchain networks. Some of its other prominent use cases include the following:
- It can be used to make hotel reservations on the leading blockchain travel booking platform, Travala
- It can be used on SwirlPay, a decentralized payment service
- It can be used on Print-ted to buy fashionable products
- It can be used on Splinterlands to purchase monster card packs
- It is used as the major token on BetProtocol
- KCS can be used for gaming on PlayGame, a direct-to-play blockchain gaming platform
- KCS can be used as collateral on Constant for loan purposes
- It can be used to make payments on CoinPayments, an excellent online payment platform
- It can be used via Pundi X for different online and offline payment scenarios.
Final Thoughts
KuCoin is on the verge of building one of the most successful community-oriented ecosystems in the blockchain industry. KCS, the native currency of both the KuCoin crypto exchange and the KCC community, now serves as a bridge between the centralized and decentralized worlds. It is also serving as a gateway to the worlds of DeFi and NFTs.
From all we’ve discussed so far, you can tell that the KuCoin token (KCS) is not just another digital currency out there. It is an exceptional ERC-20 token with multiple use-cases and huge potential. Considering the fact that KuCoin is evolving in an interesting manner, the future of KCS looks really bright. It is not only looking like a profitable investment but also a gateway to what the metaverse will offer in the future.
