Kucoin 2020 - Development Strategy for Ecosystems and Future of KCS?

By F | Invest

kucoin ecosystem

When you mention KuCoin, Binance, Huobi,etc. you can immediately think about trading on these exchanges for profit.

I also thought like that, when I first entered to the crypto market. Wallets are used to store coins, while exchanges are for trading, trading is for profit. However, they are only some parts of the above exchanges.

In 2019, you saw that many exchanges were trying to build them into a complete ecosystem in the crypto world. End users like us, in addition to trading to make profits on the exchange, can also use many other services to "make money".

As many of you also see, Binance's ecosystem has been growing. What about the ecosystem of other exchanges?

In this article, I will analyze in detail the KuCoin ecosystem - an exchange very familiar with Vietnamese.

KuCoin is a crypto exchange launched in September 09, only a short time after Binance. And along with the trend of exchange's coins at that time, KuCoin also has KCS (KuCoin Shares).

Regarding the potential of KCS, I will analyze in detail in the below part of this article.

When entering to the Vietnamese market, KuCoin is known as an exchange for trading, crypto exchange, and spot trading, and that's all.

Here's what we can do with KuCoin now:

In the sections below, I will present in a brief form, accompanied by photos, analysis data for you to follow.

Based on the graphs, statistics you can also make your own judgment & evaluation of each feature.

Spot Crypto trading on KuCoin

Aggregate figures provided by Coingecko.

KuCoin is not the exchange with the largest 24h volume. Occupying the first position is still Binance, followed by Huobi, OKEx.

This is understandable because the aforementioned exchanges have maintained the number of users and many other services attached.

However, here I want you to pay attention to the following parameters:

  • KuCoin's supported coins are currently 209 coins, with 445 trading pairs. This is the advantage of KuCoin compared to many other exchanges like OKEx, BitMax or Bibox. It is suitable for those who want to hunt for coins which are potential, but not listed on many large exchanges.

    For example, regarding a number of potential coins that have been of interest to the community recently Coti (COTI), Verasity (VRA), Phantasma (SOUL), etc. you almost found only on KuCoin. Those coins on other exchanges are unavailable, or their volume is too small.
  • Figure 2 - The fluctuations in traffic accessing to the exchanges. In this list, Bibox is the most catastrophic exchange. Binance also dropped traffic by 42% compared to the previous 6 months. KuCoin also lost 40.6%, but still higher than the average reduction of 48% of 9 of these exchanges.

KCS is used to discount transaction fees on Spot Trading KuCoin.

Margin Trading - new feature on KuCoin

Margin Trading is no longer strange to a lot of traders. Spot trading exchanges such as Huobi, OKEx have margin trading features quite early.

Not out of this trend, KuCoin has also added Margin trading to meet the needs of customers.

Summary of margin parameters of some exchanges that Vietnamese users often use.

As you need, with margin spot trading you usually don't need x20 or x50, x100 as with derivatives. But if the lever is too small, it's not very attractive.

The listing on most exchanges has the largest leverage of x10 while Huobi & Binance only has x3 or x5.

Especially, only some of the exchanges give their margin. KuCoin only allows trading leverage up to x10 with KCS. This is my favorite thing!

For you to know, high leverage will take advantage of the knowledge of technical analysis, combined with basic analysis to maximize profits.

Currently, KuCoin has 13 margin trading pairs, a little bit. Hopefully, the exchange will soon have more diverse trading pairs in the near future.

KCS is used to discount transaction fees on Kugin Trading Margin.

KuMEX derivatives exchange - Contract / Futures Trading

In the second half of 2019, the derivatives trading trend flourished, KuMEX is a derivative of KuCoin. They separate this exchange from the website.

However, I understand that KuMEX is still in the KuCoin ecosystem and this is considered as a trump card of KuCoin in 2020.

With KuMEX, users can deposit from external wallets to exchange, or simply transfer funds from KuCoin to derivative transactions.

I think this is a good practice of KuCoin, so it will take advantage of the trading accounts that are available on KuCoin. Users do not need to hassle transferring funds to a wallet, and then transferring to a new exchange.

Let's follow the below table to compare the trading volume of the Derivatives exchanges.

$ 86 million in 24-hour trading volume is not too big for crypto derivatives.

However, KuMEX is the new derivative of KuCoin, which was launched in early July 07.

After 5 months of launching, 86M USD transactions is not a bad number. Especially when KuMEX only had 4 pairs of transactions with BTC. In the future, the exchange will certainly add many new pairs.

KCS has an important role in trading on KuMEX. In the following, I will talk more specifically about the potential of KCS in the future.

KCS is used to discount transaction fees on KuMEX.

Maybe you are interested in: What is KuMEX Exchange?

Soft Staking

KuCoin also has their own staking service called Soft Staking.

In Soft Staking, you simply deposit coins (in the staking program) and receive rewards. This coin users can freely participate in trading transactions or withdraw from the exchange at any time.

Some highlights that you may be interested in Soft Staking of KuCoin are as follows:

  • Simply owning a coin on a KuCoin account will count towards participating in Soft Staking and receiving rewards.
  • Coins can be used to trade on the exchange, not confiscated. Users are free to withdraw coins.
  • Support 18 coins to participate in staking.

You can check the recent returns of coin staking in Soft Staking.

Most noticeable there NRG Return up to 19.48%.

In this way, KuCoin can attract more users - especially those who own the above staking coins.

lending

There are currently 6 coins you can lending on KuCoin: USDT, BTC, ETH, EOS, LTC, XRP.

The coins participating in this Lending will be used in Margin trading (Lending, Borrowing procedures).

Hopefully in the near future, they will soon add more coins in Lending and Margin Trading to meet the diverse needs of people.

IEO - KuCoin Spotlight

If Binance has Binance Launchpad, Huobi has Huobi Prime, and OKEx has OK Jumpstart, KuCoin also has KuCoin Spotlight - KuCoin's token sale program.

In particular, participating players will be able to buy tokens of the projects IEO KCS in KuCoin.

Let's review some parameters related to KCS price and IEO batch:

  • 5 IEO projects are MTV, TRY, CHR, COTI, TOKO.
  • $ 11.2 M USD raises capital ie 11.2 million USD (KCS money) used to buy IEO on KuCoin. This may be a significant number when compared to the total capitalization of more than 1 million USD of KCS at the time of writing.
  • On average, each project calls $ 2.24 M USD.

On average, the price of KCS has increased by about 19% from the start of the IEO news to the token sale in IEO.

KCS is used as a direct currency to participate in buying tokens in IEO on KuCoin.

KCS - KuCoin Shares

This is the part I want to mention the most in this article. If you pay attention, you will see under each section that you mention the purpose of KCS in those features. In this section, I will talk more specifically.

First of all, for those of you who don't know, KCS or KuCoin Shares are KuCoin Exchange's coins. When newly launched, KCS is usually only used to reduce transaction fees on this exchange.

Up to the present time, with the expansion of KuCoin's ecosystem, the KCS is also becoming increasingly important and has many features in that ecosystem.

KuCoin also dedicated a page to introduce their KCS. However, I find there is much more to say about this KCS. You see the picture below to understand the overview of KCS offline!

The points you can look forward to in KCS in the near future:

  • KCS has a number of familiar applications (for floor coins) such as reducing transaction fees, up vip Levels, receiving incentives. Especially recently KuCoin launched Margin Trading & KuMEX. Both of these trading products use KCS to reduce transaction fees. Hopefully in the future, their trading volume will increase, thereby helping to increase the demand for buying KCS to use.
  • Spotlight (IEO) underwent 5 IEOs, a total of $ 12.4 million in KCS money was used. This has a very clear impact on the price of KCS, you can follow the table above.
  • KCS Burn - KuCoin also spends 10% of their profits to buy KCS in the market and burn them. Thus, in the future, the supply of KCS in the market will decrease. This reduction will be faster as the exchange grows and gains more profits.

In particular, KuMEX is a very interesting product. Not only is KuMEX trading profitable, but it also uses KCS as a transaction fee, reducing KCS traffic. Then, it has the positive impact on its price.

You can refer to the article below of Coin98.

Summary

We are gradually ending 2019, all exchanges have their strategic cards.

When learning about an exchange's token, I am very interested in the ecosystem of that exchange and that exchange's token. Because the usage of the exchange's token will affect its price, you will know if the exchange token is worth the attention and investment or not.

KuCoin Shares and KuCoin & KCS are gradually expanding and creating a solid ecosystem. Hopefully we will see a lot of potentials and new opportunities of KuCoin and KCS in 2020.

If you have any questions, don't hesitate to comment below. The team Coin98 and I will answer to you as soon as possible.

Goodbye and see you again in the next article!

F

AI, Machine Learning, Big Data & Blockchain are 4 pillars of the current Technology Development.