What is KuCoin Shares and how can you benefit from them? You probably have heard of people talking about them and are curious as to what all the hype is about. Are they really worth buying? What can they do for you? Is it all a scam somehow?
Here I’ll be going over everything that you will ever need to know about KuCoin Shares including what they are, how you can make money with them, other benefits, the future and more.
What Is KuCoin Shares?
To summarize everything up…KuCoin Shares (KCS) are a token that was created by the KuCoin exchange to help grow the platform and to give back to users. Personally I’m a big fan of them because they have a real use case that holders can benefit from.
KuCoin itself is a cryptocurrency exchange where buyers and sellers can go to exchange different coins. If you have every heard of Binance, Bittrex, CoinEgg, etc then you probably are already aware of this. Basically what they do is provide a platform where people can easily transact between each other. You can use this exchange to purchase all sorts of different cryptocurrencies safely, easily, and quickly.
Kucoin uses a revenue sharing business model where they actually give back a portion of the trading fees collected through the exchange to holders of KCS. In addition to this there are also several other benefits if you own KCS.
KCS are very similar to the COSS coin that the COSS exchange created… in fact they are pretty much the same type of deal, however, KuCoin was the one that started the whole thing and then COSS followed their lead. Its also similar to Binance’s BNB coin except with BNB you do not get a share of the trading revenue.
Revenue Sharing with KCS
KuCoin shares 50% of the trading fees with KCS holders. So the more KCS you hold the more you will get in fees. These fees are distributed proportionately to holders of the coin. This model is pretty much the same as owning a stock where you collect dividends based on how well the company performs. The better KuCoin performs and the higher their trading volume, them more you will earn.
To understand how this all works you first need to understand how KuCoin collects fees in the first place.
How Fees Work
With every transaction there is a buyer and a seller. If you are going to use KuCoin to buy Ethereum then there must also be someone willing to sell Ethereum at the price you want to buy it at. That is how exchanges work. They facilitate the trades between the buyers and sellers.
With each trade that happens KuCoin collects a 0.1% fee from both parties, the buyer and seller (this is on the lower side by the way). So for example lets say that you go and buy Monero with Bitcoin. You are going to be selling Bitcoin for Monero and the seller is going to be selling Monero for Bitcoin. From this there will be a 0.1% fee taken from both coins. The fee you will be charged will be taken from what you bought.
And this is what happens for every transaction.
As a KCS holder you will receive a portion of these fees directly into your wallets in your KuCoin account. There is no telling how much you will actually make because there are a lot of variables at play here such as the amount of coins in circulation and the volume of transactions.
If you want to know how much you can earn in KuCoin shares right now you can take a look at kucoinshares.com. They provide a calculator where you can type in the amount of KCS and it will spit out how much of a bonus you will earn by holding that. This takes into account the volume of transactions, circulating supply, and is updated frequently.
The revenue sharing system is by far the main benefit of having KCS but there are others.
Another benefit that I came across is that they provide faster customer support based on the amount of KCS you have. I can’t personally say I have experienced this but they do state that this is an added benefit in their whitepaper.
If you are experienced in the world of cryptocurrencies then you probably know how nice this would be. Lack of fast support is a major problem with exchanges.
Outlook On KuCoin Shares
Ok, so obviously the dividends that KuCoin pays out to holder of KCS will increase as the volume of transactions increase. So if you believe in the KuCoin exchange and believe that it will continue to grow, as I do, then you are probably pretty optimistic with what shares can bring in the future.
However there will also be more KCS distributed. There will be a total supply of 200 million coins distributed. The more coins distributed means the more shareholders and this means the less you will make with the amount of KCS that you hold.
In order to combat against this KuCoin is “burning coins”. Every quarter they are using 10% of their revenue (at least) to buy back KCS coins and to destroy them. They will continue to do this until there are only 100 million left and that will be the remaining total.
Binance also is doing this with their coins. The reason for it is so that they can raise funds early on by releasing a bunch of coins and then as they grow they will be able to easily buy them back, which will in turn decrease the supply and add value to the remaining coins.
Another thing to consider when looking at the possible future of KCS is the price per coin. As the exchange grows so will the demand for KCS which will cause the price to increase. How much will this increase? Who knows… this is something that I’m not even going to try to predict.
How To Store KCS
KuCoin Shares are an ERC20 token. This means that they run on the Ethereum blockchain and can be stored in Ethereum wallets like MyEtherWallet… and if you want to keep them more safe you can hold them in a TREZOR hardware wallet.
However, as far as I know you will have to keep them in your wallet on the exchange if you want to get your revenue sharing bonuses, unlike COSS coins where you can actually keep them in another wallet and still get the bonuses.
Are KuCoin Shares Worth Buying?
The answer to this question ultimately depends on what you think of the KuCoin exchange. If you are bullish on the outlook of the exchange then you should be bullish on the outlook of the KCS coin as well, which means it might be worth investing in for you.
I am personally invested in KCS because I like what it does and I believe in the exchange. However, I’m not telling you to go out and invest just because I am. You should always do your own research.
As always, if you have any questions, comments or concerns please leave them below and I’ll get back to you soon 🙂