How Kucoin Shares (KCS) work, and how to buy them.
Kucoin Shares (KCS) is a cryptocurrency token specifically for use on the Kucoin exchange.
Owning KCS does two things:
- Gets you a discount on trading fees. You get 1% off your trading fees for every 1,000 KCS you hold, up to a maximum of 30%.
- Pays you dividends. 50% of all trading fees paid by Kucoin users each day is set aside for KCS holders and distributed equally among all KCS tokens.
A small handful of KCS tokens might not make much of a difference, but the benefits of having more are potentially huge. But at current KCS prices (over US$17 at the time of writing), it would be a considerable investment.
How to buy KCS
KCS is only available at Kucoin.
You can buy and sell KCS with the following cryptocurrency. The exact price will vary depending on the pair you’re trading. It’s worth taking this into account if you’re looking to buy or sell a lot of KCS.
- Bitcoin (BTC)
- Ethereum (ETH)
- NEO and GAS (NEO and GAS)
- Tethers (USDT)
- Bitcoin Cash (BCH)
- Red Pulse (RPX)
- Dash (DASH)
- Change (CAG)
- Modum (MOD)
Is it worth owning KCS?
As a coin, KCS itself has grown dramatically in value since creation, becoming quite successful in its own right. There’s a set supply limit of about 181 million coins, of which half are currently in circulation.
An example of KCS trading discount and payout
If there are 100 million coins in circulation, and someone owns 1 million of them, then they’ll be getting a 30% discount on their trading fees (the maximum possible) as well as 0.5% of all trading fees collected on the exchange.
If Kucoin collects a total of 10 BTC in bitcoin trading fees that day, this person’s dividends will be 0.05 BTC.
Another 49.5% of all the trading fees will be distributed among other KCS owners.
These dividends will be paid in the coins being traded, so this person will quickly build up a considerable and diverse portfolio.
The exact distribution of coins being paid out will vary depending on what’s popular each day, so the dividends will also tend to be paid in the most popular coins. The trading fees can also vary between coins. If there are no fees being paid, for example if there’s a promotion going on, then there will be no dividends earned in that coin for the duration.
As long as Kucoin remains popular, KCS is likely to keep being popular as well. It’s an effective store of value on the exchange itself and might remain fairly steady even if a particular coin dumps. Even if it gets pricey, there’s always going to be someone looking to hit the next 1,000 threshold for a larger discount.
The discount on trading fees will be negligible without a massive investment in KCS. At current prices, you’d need roughly half a million dollars’ worth to get the full 30% discount on trading fees.
But if you’re working with enormous volumes, then that might still be worth it.
The dividends might be even more valuable. Not only will a large KCS investment get you a discount on fees, but you might well earn more back on dividends than you spend in fees.
These dividends take the form of a constant stream of a very wide range of crypto being added to your account. With a bit of time, and if any of those coins explode, it can suddenly become a lot more valuable.