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Simply Explained

Simply Explained: KuCoin Token (KCS)

Updated: Jul 25, 2024
Published: May 30, 2022
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One of the largest cryptocurrency exchanges in the world.

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If you’ve been investing in the cryptocurrency space over the past five years, you’ve probably come across the name KuCoin. KuCoin is a cryptocurrency exchange similar to Binance. The platform allows for cryptocurrency purchases, and basic trading options, and has amassed more than 10 million users across 200 countries. One of its key perks is funds can be sent from DeFi wallets, purchases made, and transactions made without KYC, something not possible on other primary exchanges. This has allowed it to be dubbed a bridge between centralised and decentralised finance. CeDeFi. However, the cost is that KuCoin is not accessible in multiple countries. 

As you may know, Binance has the Binance Coin (BNB). This is similar to how KuCoin has KuCoin Token (KCS).

What is KuCoin Token (KCS)?

In a single sentence. KuCoin's version of Binance Coin, and if you don’t know what Binance Coin is, it’s the fuel that powers the Binance Smart Chain (Binance’s blockchain). KCS is the fuel that powers the KuCoin ecosystem. 

KCS was launched back in 2017 as a profit-sharing token that incentivised traders to use the exchange. The total supply of KCS was set at 200 million tokens, and there is a planned buyback and burn scheme until only 100 million tokens remain.

Kucoin aims to go live with its decentralized trading solution. KCS will be the native asset of all KuCoin services and will act as a governance token of the KuCoin community. As of now, there is no clear explanation as to what governance the token will have but we can't imagine it will be over the exchanges day to day practices.

KCS will become the key to the entire KuCoin ecosystem. With the development of DEX and KuChain, KCS will also be the underlying fuel that powers it all.

Think of how BNB is required to participate in ICOs on Binance, and you need BNB to use dApps on the Binance Smart Chain. KCS will be used in a similar way for the KuCoin ecosystem.

Perks upon perks, with grand plans to expand their ecosystem. 

1. KCS is used to pay for trading fees on the Exchange, allowing users to receive discounts of up to 80%.

2. KCS also includes participation in the token sales held on the platform.

3. KCS also allows holders to become “KuCoin VIPs” meaning they don’t need to have a huge trading volume to unlock the reduced fees.

4. KCS can also be used as a payment method, like traditional FIAT across a variety of shopping websites

How does ‘buy and burn’ work?

As we mentioned, at launch, 200 million tokens were released. The goal is to get this down to 100 million. KuCoin and the KCS team are buying back KCS from the market and burning them every quarter. The amount burned is dependent on the quarterly trading volume of the exchange. This makes KCS a deflationary asset. As of April 2022, there are 145 million tokens in circulation.

Do you use the KuCoin exchange, and if so how do you think it compares to the other exchanges out there? If you’re bullish on it, do you hold the token? Comment below and let us know your thoughts on KCS.

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