KuCoin. Features and Benefits

A Brief History of KuCoin Token

Michael Gan and Eric Don, two blockchain and cryptocurrency enthusiasts, laid the groundwork for KuCoin in 2013. Surrounding themselves with professionals in their field, they launched the KuCoin crypto exchange in 2017. After successfully initiating KuCoin in September of the same year, the team developed its own KuCoin Token. Without starting capital, it was decided to hold an ICO.

The sale of 181 million units of KCS began on September 2, 2017 and unfolded in three stages:

  • 35% (65M KCS) allocated to the development team,
  • 15% (25 million KCS) – for advisors and large investors,
  • the remaining 50% (100 million KCS) – for private investors.

After the ICO, the team promised to freeze their KCS for 4 years, but investors could convert KCS to any other cryptocurrency without any restrictions. The KuCoin Shares token was created according to the ERC-20 standard based on the Ethereum blockchain.

In 2021, the KuCoin team decided to launch its own KuCoin Community Chain blockchain. The KuCoin Community Network (KCC) is a public decentralized blockchain developed by the KuCoin community. The blockchain is compatible with the Ethereum Virtual Machine (EVM) and supports smart contracts. Its goal is to provide community users with fast speed, savings and convenience that surpass those of the Ethereum blockchain.

Benefits of KuCoin Token

  • Reducing commission costs. Holding KCS tokens on the KuCoin marketplace contributes to a noticeable reduction in mandatory trading fees.
  • Staking rewards. KuCoin provides rewards to KCS token holders who participate in staking. The staking reward scheme allows users to multiply their assets by holding KCS tokens for a given period.
  • Distribution of profit from commissions. The platform allocates 50% of the daily trading commissions received among the holders of KCS tokens. The share of the distributed amount depends on the number of KCS tokens owned by the user.

Disadvantages of KuCoin Token

  • Market dependence. The value of KCS tokens is closely related to the performance of the KuCoin exchange. All negative reports or incidents regarding the platform can cause the price of KCS tokens to fall.
  • Difficulties in a highly competitive environment. The cryptocurrency market is incredibly competitive, and many alternative tokens provide similar benefits as KCS. This competitive environment may cause a decline in demand for the KCS token, which in turn may negatively affect its value.