KuCoin Shares is a cryptocurrency token that was specifically made to be used on the KuCoin Exchange and was developed using ERC-20 protocol. The tokens were created by KuCoin exchange itself (KuCoin Inc.) and each KCS token represents a stake in the exchange. As a reward for holding KCS tokens, the KuCoin Exchange distributes 50% of their profits from trading fees each day to token owners. The “dividends” are referred to simply as the “KuCoin Bonus.” Aside from paying out a daily bonus, the token can also be used to reduce trading fees on the exchange.
The KCS token’s bonus feature is similar to how dividends work in the traditional stock market, which has attracted a lot of interest from investors. For every trade placed at the KuCoin Exchange, 0.1% is charged to the user in commission. These commission fees are what the daily KCS bonus is calculated from. The KuCoin Exchange is operated by KuCoin Inc, and is based in Hong Kong, China.
Unlike many other centralized cryptocurrency exchanges, KuCoin focuses much more on their users. Not only do they offer the daily KCS bonus, but they also have a referral program that pays 40% of a user’s transaction fees to the person who referred them and pay out GAS to anyone who has NEO stored on the exchange.
KuCoin Shares Value, Market Cap and Volume
There is a hard cap of 181,043,076 KCS tokens that can ever be released to the public, though only about 50% of them were in circulation as of January 30th, 2018. When the KCS token was first released, it was trading for under $1.00 USD, but reached as high as $20 in early January, 2018. On a daily basis, anywhere from $1 million to $50 million USD worth of KCS tokens can be traded. This depends mostly on supply, demand and the total daily trading volume at KuCoin Exchange.
Buying, Selling and Storing KCS Tokens
The KCS token can currently only be bought at KuCoin.com through their exchange platform. When buying KCS, it is available in the currency pairs: KCS/BTC, KCS/ETH, KCS/USDT and KCS/BCH. When selling, it can be sold in the following currency pairs: NEO/KCS, BTC/KCS, RPX/KCS, DASH/KCS, CAG/KCS, GAS/KCS, MOD/KCS and BCH/KCS.
Once you own KCS tokens, they can be stored on any wallet that supports ERC-20 tokens. The most secure way to store KCS is by using a hardware wallet, such as the Ledger Nano S or Trezor. Other popular storage options include desktop wallets like MyEtherWallet and Exodus.
KCS Tokens and the KuCoin Exchange
The KuCoin Exchange allows traders in Asia and other parts of the world to buy and sell a wide range of cryptocurrencies on their digital platform. KCS tokens can be used by traders to receive lower trading fees and/or profit from the popularity of the exchange. If more people use the exchange, it will generate more revenue via trading commissions, and a greater bonus will be distirbuted to KCS holders. This incentives users to purchase KCS and tell others about it.
Kucoin also charges withdrawal fees, which are not factored into the daily KCS bonus. The fees vary based on the currency being withdrawn. Most notably, NEO and GAS can be withdrawn for free. Withdrawals in other currencies will incur the following fees:
- KCS – 2
- BTC – 0.0005
- USDT – 10
- ETH – 0.01
- IOST – 50
- LTC – 0.001
- KNC – 0.5
- BTM – 5
- QTUM – 0.1
- EOS – 0.5
- CVC – 3
- OMG- 0.1
- PAY – 0.5
- SNT – 20
- BHC – 1
- HSR – 0.01
- WTC – 0.1
- VEN – 2
- MTH – 10
- RPX – 1
- REQ – 20
- EVX – 0.5
- MOD – 0.5
- NEBL – 0.1
- DGB – 0.5
- CAG – 2
- CFD – 0.5
- RDN – 0.5
- UKG – 5
- BCPT – 5
- PPT – 0.1
- BCH – 0.0005
- STX – 2
- NULS – 1
- GVT – 0.1
- HST – 2
- PURA – 0.5
- SUB – 2
- QSP – 5
- POWR – 1
- FLIXX – 10
- LEND – 20
- AMB – 3
- RHOC – 2
- R – 2
- DENT – 50
- DRGN – 1
- ACT – 0.1
- ENJ – 10
- CAT – 20
- DAT – 20
- CL – 50
- TEL – 500
- DNA – 3
- AGI – 2
- COFI – 5
- ARY – 10
- cV – 30
- ZPT – 1
KuCoin Daily Bonus
If you hold KuCoin Shares (KCS tokens), you are rewarded each day with a bonus. The bonus is calculated based on the daily profits made by the exchange from trading fees. The formula works like this: (Daily Profits from trading fees x 0.5) / total KCS tokens in circulation = bonus per token. The remaining 50% of trading fees generated by the exchange are held by KuCoin to cover operating costs, development, and other expenses. KuCoin uses 10% of their profits generated from trading fees to buy back KCS tokens each quarter. They are set to continue doing this until the company owns 100 million of the 200 million KCS tokens in existence.
