Updated: Dec 20, 2019
KuCoin is a Hong Kong-based international cryptocurrency exchange that currently supports the effortless trading of over 210 digital assets. KuCoin Shares or KCS is the KuCoin exchange’s native currency and an ERC20 token, which allows holders to make a tidy profit from the overall success of the exchange. KCS is the benchmark by which users of the KuCoin exchange are rewarded. The more KCS users hold the more dividends they receive.
This guide will explain what KuCoin Shares are designed for, the team behind it, how it works and the various uses and applications.
What Are KuCoin Shares Designed For?
Kucoin is aimed at providing users exchange services and digital asset transactions in a safer, and more convenient global environment using KCS as a trading point. The coin is also designed to aid in the integration of premium assets worldwide, and constructing a modernistic transaction platform.
The creators designed KuCoin Shares as a mechanism of rewarding those participants, who aid in making the KuCoin exchange a success. The exchange shares 50% of the overall trading fee revenue with users holding KCS. The creators intended to keep trading fees low while maximizing rewards and incentives, for holding or trading the native cryptocurrency KCS.
The founders in 2011 started researching blockchain technology and decided to build KuCoin. The exchange launched four years later to become a part of the top 10 worldwide exchanges, by 2019.
Who Is the Team Behind KuCoin Shares?
KuCoin Shares is created by Michael Gam, who is also the CEO of
KuCoin. Gam is a former technical expert at Ant Financial, which is an affiliate company of the Chinese Alibaba Group, before which he was a senior partner at internet giants like KF5.COM and MikeCRM.
KuCoin’s COO, Eric Don is stated to be the CTO and senior partner of IT companies including Youlin.Com, Kiteme, and Reinot.
How Do KuCoin Shares Work?
The KuCoin payout system enables users to enjoy the benefits of passive income by simply holding on to the native tokens. The current payout percentage is set at 50%, which is expected to reduce in the future.
The distribution model is stated clearly in the project’s whitepaper. The amount of KCS a user has in its exchange wallet is taken into account. User balances are entered for payout calculation every day at 0:00 (UTC+8). This is done after the accounting team evaluates individual trading fees from each trading pair, on the exchange.
The excess is added to the wallets in the form of crypto coins. Many users who wake up the next morning are surprised at holding a little bit more Nano, Bitcoin, Dragonchain, and other hundred or so tokens they may never have heard of.
Further, an additional 1% trading fee discount is provided for every 1,000 KCS a user holds. However, the maximum amount is capped at 30%.
KCS can currently be purchased only via the KuCoin’s official exchange site. While registration is simple, the exchange requires depositing initial cryptocurrencies, such as NEO, BTC, BCH or ETH in the KuCoin exchange wallet to trade KCS.
Being an ERC-20 token, the crypto coin can be stored on hardware wallets supporting Ethereum blockchains, like Trezor, Ledger Nano S, and MyEtherWallet, among others.
What are Current and Future Applications of KuCoin Shares?
KuCoin Shares is primarily used as a trading cryptocurrency on KuCoin Exchange. It helps to lower trading fees and provides an opportunity to receive rewards. KuCoin is dubbed as the people’s exchange, as it is currently open to new users and shares profits with its members.
KuCoin recently partnered with ADAMANT, the decentralized, anonymous and secure blockchain messaging platform, to allow users to transfer KCS through chats. Other notable partnerships include the Boston blockchain company, Arwen and Apex Trader, one of the fastest-growing automated crypto trading platforms.
OKEx, according to CoinMarketCap, is currently the largest exchange on a global level with an around-the-clock trading volume of over USD 2 billion. KuCoin pales in comparison with this dominating authority, with a trading volume of a little over USD 128 million.
However, market experts believe that the unique crypto platform will continue its massive draw of new users, and will move into the top 10 rankings. This would put the Kucoin exchange and KCS token close to the third-ranking Binance (USD 1.7 billion) while surpassing HitBTC (USD 475 million), which is at rank 10.
Considering the significant increase in worldwide cryptocurrency interest, and the fact that exchanges due to scalability issues are currently not accepting new users, it is very likely that KCS would soon become a very successful crypto coin.