What Is KuCoin Token (KCS) How It Works & Where To Buy It?

KuCoin (KCS) is the 5th largest exchange token in the world. KuCoin Token (KCS) is the native token of the KuCoin Exchange.

KCS holders have access to trading discounts, yield earnings from KuCoin’s decentralized financial services, and exclusive access to tokens that the KuCoin platform plans to list.

The KCS token is currently the 41st largest cryptocurrency in the world by market cap.

How KuCoin Token (KCS) Works

KuCoin is among the largest cryptocurrency exchanges globally. The crypto exchange has amassed a significant amount of users, and current statistics indicate that the platform attracted more than 6 million new users in the first quarter of 2022 alone.

The exchange also boasted more than $1 trillion in total volume for Q1 of 2022 – an average daily trading volume of $11 billion. The platform has performed particularly well in terms of user growth and ranked within the top 3 cryptocurrency exchanges globally in regard to this.

KuCoin was only founded in 2017 by Johnny Lyu, and the exchange is already one of the leading crypto platforms in the world with users in more than 207 countries. The major success of the exchange since its launch has also been reflected in the price appreciation and popularity of the KCS token.

The KuCoin exchange also recently released its updated whitepaper which has brought an elevated level of excitement to the platform as well as the token. The whitepaper expands on the idea of making KCS a deflationary token. In the past, KuCoin would collect trading fees, then use a portion of these fees to purchase KCS tokens on the secondary market and burn them (remove them permanently from the supply).

Now, if a user opted to buy KuCoin tokens (KCS) it could be deemed as a more valuable asset – this is because of the EIP1559 mechanism (read more here) that will be incorporated in all KuCoin Community Chain transactions (KCC).

Simply put, trading fees will still be used to purchase and burn KCS tokens, and now a deflationary burning mechanism (EIP1559) will also result in an increased rate of burning for transactions taking place on the KuCoin Community Chain (KCC).

The KCC aims to bridge the centralized and the decentralized, facilitate multi-chain operability, and provide users with access to NFTs, games, and innovative DeFi products. Essentially, it will act as a KuCoin decentralized trading solution.

The total supply of KCS started at 200 million, with a promise from the team that they would burn tokens until the supply was 100 million. Tens of millions of KCS tokens have already been burned, and with the updated whitepaper, it’s evident that the token allotments have also shifted to being more community-oriented.

A more detailed description of KCS token distribution is beneficial because it highlights the projected scarcity and potential price appreciation of the KCS token that could occur in the next few years.

The additional incorporation of KCS incentives for KuCoin ecosystem builders, linear releases for early founders, and innovative burning mechanisms are all indicative of the positive strides the KuCoin foundation, and the team at large are making.

Essentially, the main incentive for purchasing KCS tokens was to receive trading fee discounts – as of now, the incentives include discounts, DeFi yield rewards for staking, liquidity provision, and more.

The international cryptocurrency exchange based in Seychelles has taken prolific steps to become a top competing exchange, that prioritizes rewarding its community of KCS holders.

What Is KuCoin Token (KCS) Used For?

The KCS token has various use cases – among the most notable use cases for KCS tokens include:

• Trading Discounts – Individuals who hold KCS tokens on the KuCoin platform are eligible for training fee discounts.
• Early Token Access – KCS holders are required to pledge their KCS tokens in order to receive early access to tokens that will be listed on the KuCoin platform.
• Transaction/Gas Fees – The KCS token is used to pay for transaction fees on the KuCoin Community Chain – these transactions contribute towards the permanent burning of KCS tokens. The deflationary mechanism of KCS makes the token especially appealing to a number of retail and institutional investors.

The KCS token has experienced extreme price volatility – after listing at less than $1, the price surged to more than $20 before plummeting to levels below $1 for almost 2 years.

Most recently, the token price of KCS is above $16 and daily KCS trading volumes frequently exceed $10 million.

Where To Buy KuCoin Token (KCS) Tokens

KuCoin Token (KCS) is most frequently traded on the KuCoin exchange.

KCS tokens aren’t available to purchase on most centralized crypto exchanges – KCS tokens are only available to be traded on KuCoin exchange, AscendEX, and ProBit Global.

Before you’re able to purchase KCS, you’ll need to deposit fiat money onto an exchange, and following the purchase, KCS tokens will be credited to your KCS digital wallet on the relevant exchange.

Crypto exchanges are typically safe places where you can buy, sell and store tokens.

Alternatively, individuals wanting to make use of the KCC Chain and various DeFi platforms within the KuCoin ecosystem can transfer their KCS tokens (via the ERC-20 network) from a centralized exchange to a Ethereum Network compatible wallet like MetaMask.

FAQs About KuCoin Token (KCS)

How long has KuCoin Token (KCS) existed?

KuCoin Token was launched in October 2017. The KCS token was listed at under $1.

The KuCoin cryptocurrency exchange has seen significant growth in recent years, and statistical reports from Q1 of 2022 are indicative of exponential growth.

What’s controversial about KuCoin Token (KCS)?

Before investing in exchange tokens, it’s essential that you consider the utility of the token, the popularity and credibility of the exchange, and any other important factors surrounding the project.

Let’s take a look at the top controversy surrounding KuCoin Token (KCS):

• KCS Trading Mainly Available on KuCoin – The KCS is only listed for trading on Kucoin, AscendEx, and ProBit Global. The restricted trading of KCS tokens lends itself to speculation and concern.

  The most notable concern is if something negative like a hack or exploit should happen to the KuCoin exchange (like has happened to many other exchanges). The use cases for KCS tokens would then be null and void, along with the platform where KCS tokens are most frequently traded.

How many KuCoin Token (KCS) tokens are there?

At the time of writing, KuCoin Token (KCS) has a circulating supply of 98,379,860.95 KCS (58% of the total supply).

The total supply of KuCoin Token (KCS) is 145,879,861.

There max supply of KuCoin Token (HT) is 170,118,638.

Can KuCoin Token (KCS) be mined?

KuCoin Token (KCS) is not a mineable cryptocurrency. KCS token is an exchange token and governance token – its deflationary mechanism makes it especially appealing to investors.

KCS tokens can be earned by participating in DeFi products such as staking or liquidity provision.

What is the market cap of KuCoin Token (KCS)?

The market cap of KuCoin Token (KCS) is the total amount of coins in circulation x the current market price of KCS.

KuCoin Token (KCS) Market Cap = 98,379,860.95 KCS x $16,58 = $1,63 billion (41st largest market cap).

Biggest Competitors Of KuCoin Token (KCS)

Centralized exchanges, rely mainly on trading fees to generate revenue. This, along with the new EIP1559 burning mechanism, and expansion of the KCC will lead to a reduced supply of KCS tokens. Scarcity is one of the major factors that is linked to price appreciation.

Some notable competitors of KuCoin Global and KCS are:

• Binance (BNB)
• Coinbase
• Crypto.com (CRO)
• HTX Global (HT)

What Are The Future Plans For KuCoin Token And KCS Token?

KuCoin Token has recently undergone a whitepaper upgrade. This clearly highlights the vision of bridging centralized and decentralized use through the KuCoin Community Chain and through centering all actions around the KCS token.

The deflationary mechanism will lead to a reduced supply of KCS tokens. In turn, the increase of user adoption on the KCC and in the KuCoin ecosystem will likely result in KCS token price appreciation.

The abovementioned is speculative and is dependent on multiple factors, including the continued success, positive market sentiment, and the continued rapid growth of user adoption that the KuCoin exchange has seen recently.

Pros And Cons Of KuCoin Token And KCS Token

Pros:

• One of the largest crypto exchanges – KuCoin is one of the most reputable and popular cryptocurrency exchanges in the world.
• Low supply – The total supply of KCS is 145,879,861 and that number is expected to decrease substantially in the next few years.
• DeFi developments – The KuCoin Community Chain is pioneering the growth of DeFi in the KuCoin ecosystem.
• Rapid increase in users – More than 6 million new users have joined the KuCoin platform in Q1 of 2022.

Cons:

• Restricted use and utility issues – The highest trading volumes for KCS tokens take place on the KuCoin exchange – if there were to be an exploit of the exchange, it would result in a major loss of utility for the KCS token.

  Sequentially, the top trading exchange for KCS tokens (KuCoin) would also no longer be able to facilitate the trade of KCS tokens, leaving KCS holders stuck with KCS tokens they can’t trade on other exchanges because KCS tokens aren’t listed on many exchanges.