KuCoin Shares (KCS) May Benefit From Binance Coin’s Recent Surge
BNB’s performance has ultimately helped boost the AltDex Exchange Index (ALTEXC), a benchmark index for the industry’s leading exchange tokens, more than 32% in the past month, significantly outperforming the overall crypto market.
While most other major exchange tokens have traded flat to positive over the past month, KuCoin Shares (KCS), the token associated with the Singapore-based crypto exchange, has fallen more than 27%, bringing its 1-year decline to 94%.
KuCoin 2.0 Inbound
KuCoin’s nonstop downtrend has not prohibited the exchange from continuing its development efforts, as it closed a $20 million Series A round in November from IDG Capital, Matrix Partners and Neo Global Capital. The funds were raised to support the development of KuCoin 2.0, which will bring new features like stop orders, upgraded APIs and a dust collector, to the exchange by the end of Q1 2019.
KuCoin also recently announced that users can now purchase Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP (XRP) with credit and debit card, through a new partnership with Simplex, a leading payment processing company. Interestingly, Binance announced a very similar arrangement that was heralded as a major step forward in the industry.
The KCS Difference
While KuCoin is currently ranked 84th overall in terms of trading volume on CoinMarketCap (~$4 million daily), the exchange is one of the premier locations for reliable trading of altcoins not currently available on other mainstream platforms. KuCoin currently lists 383 different markets, including recent additions like BitTorrent (BTT) and Grin (GRIN).
Apart from the trading fee discounts for holding KCS, KuCoin also uses 50% of all trading fees to buy KCS from the market for its daily distributions. This means that the more popular KuCoin becomes, the higher KCS’s yield becomes — not a bad deal.
Try this KCS yield calculator to test the impact of trading volume on yield.
Given that Binance has been on a run lately, investors might want to look for similar options that have not yet moved higher. This ultimately makes KuCoin Shares an interesting exchange token to monitor moving forward, as a rise in general market sentiment will likely translate into higher trading volume. Throw in the fact that KuCoin’s functionality and UI are on par with Binance and the exchange will soon release a major update, and you have a seriously undervalued digital asset.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.