Kucoin 2020 - KCS Ecosystem Development Strategy and Future?
When you mention KuCoin, Binance, Huobi ... you can immediately think about trading these exchanges for profit.
I also thought that when I first entered the crypto market. Wallets are used to store coins, while exchanges are for trade, trade is for profit. However, it is only part of the upper floors.
In 2019 you see exchanges trying to build them into a complete ecosystem in the crypto world. End users like us, in addition to trading to make money on the floor, can also use many other services to "make money".
As many of you can see, Binance's ecosystem is growing. What about the ecosystem of other exchanges?
In this article, I will examine in detail the KuCoin ecosystem - a trading platform familiar to our Vietnamese brothers and sisters.
KuCoin Overview
KuCoin is a crypto exchange launched on September 09, shortly after Binance. And along with the trend of coins on the floor at that time, KuCoin was also KCS (KuCoin Sharing).
Regarding the potential of KCS, I will review in detail at the bottom of this article.
When entering the Vietnamese market, KuCoin is known as a trading floor, crypto exchange, spot trading and so on.
Here is what we can do with KuCoin today:
Spot Trading
Margin Trading
KuMEX - Trading in Contracts / futures
Staking
Lending
IEO - KuCoin Spotlight
KCS - KuCoin Shares
In the sections below, I will present a short form, accompanied by images, review data for you to follow.
Based on graphs, statistics you can also make your own judgment and analysis of each feature on the floor.
Maybe you are interested in: KuCoin: Guide to registering and trading with KuCoin
Spot Crypto trading with KuCoin
Combined figures provided by Coingecko.
KuCoin is not the floor with the largest 24h volume. Occupying the first position was still Binance, followed by Huobi, OKEx.
This is understandable because the aforementioned exchange keeps the number of users and many other services attached.
However, here I would like to pay attention to the following parameters:
KuCoin support coins are currently 209 coins, with 445 trading pairs. This is the advantage of KuCoin compared to many other exchanges. More than OKEx, BitMax Straw Bibox. Suitable for those who want to hunt for potential coins but are not listed on many major exchanges.
For example, a potential coin that has recently become of interest to the community Coti (COTI), Verasity (VRA), Phantasma (SOUL) ... The siblings are mostly found only in KuCoin. Other floors are not available or the volume is very small.
Figure 2 - Changing traffic to access exchanges In this list, Bibox is the most catastrophic disaster. Binance also dropped traffic by 42% compared to the previous 6 months. KuCoin also lost 40.6%, but even higher than the 48% decline in 9 of these exchanges.
KCS is used to discount transaction fees at Spot Trading KuCoin.
Margin Trading - new feature in KuCoin
Margin Trading is unknown to many traders. Trading platforms like Huobi, OKEx have advance margin features.
Not in this trend, KuCoin also added the Margin trading feature to meet the many needs of the brothers.
Summary of margin parameters of some floors often used by Vietnamese users.
As you need, in margin spot trading you usually do not need x20 or x50, x100 as in derivatives. But if the lever is very small, it is not attractive.
The list on most exchanges has the largest x10 action while Huobi & Binance has only x3 or x5.
In particular, only a few of the exchanges provide their margin. KuCoin only allows trade leverage up to x10 on KCS. This is my favorite thing!
For those of you who know, high performance will take advantage of technical analysis knowledge, combined with basic analysis to maximize revenue.
Currently, KuCoin has 13 trading margin pairs, relatively. Hopefully, the exchange will soon have more diverse trading pairs in the near future.
KCS is used to discount Kugin Trading Margin transaction fees.
Maybe you are interested in: What is Margin Trading? Should newcomers use Margin Trading?
Exchange of KuMEX derivatives - Trading / futures Trading
In the second half of 2019, the trend of trading derivatives is in full, KuMEX is a KuCoin derivative. They separated this floor from a separate website.
However, I understand that KuMEX is still in the KuCoin ecosystem and it is considered a strategic card and the goal of KuCoin in 2020.
With KuMEX, users can deposit from external wallets to exchange and exchange, or simply transfer funds from KuCoin to transactions that originate.
I think this is a good KuCoin technique, so it will take advantage of the trading accounts currently trading with KuCoin. Users do not need to bother transferring funds to a wallet and then transferring to a new exchange.
You follow the table to compare the trading volume of Derivatives floor Derivatives below.
The $ 86 million in 24 hour trading volume is not too big for crypto derivatives.
However, KuMEX is the new derivative of KuCoin, launched in early July 07.
After 5 months of launch, 86M USD transactions are not a bad number. Especially when KuMEX only has 4 pairs of BTC transactions. In the future, the floor will definitely add a lot of new pairs.
KCS plays an important trading role in KuMEX. In the following, I will say more specifically about the potential of KCS in the future.
KCS is used to discount KuMEX transaction fees.
Maybe you are interested in: What is the KuMEX floor? KuCoin 2020 Strategic Card
Soft Staking
KuCoin also has its own staking service called Soft Staking.
In Soft Staking, you simply place coins (in the staking program) and receive rewards. Users of this coin can freely participate in trading transactions or withdraw from the floor at any time.
Some highlights you may be interested in Soft Staking of KuCoin are as follows:
Owning only one coin in a KuCoin account will count toward participating in Soft Staking and receiving rewards.
Coins can be used to trade on the floor, not confiscated by coins. Users are free to remove coins.
Support 18 coins to participate in staking.
You can check out recent coin spending returns on Soft Staking.
Most notable there NRGB returned to 19.48%.
This way, KuCoin can attract more users - especially those who own the coins staking above.
Maybe you are interested in: What is staking? A basic staking guide for beginners
Lending
There are currently 6 coins you can lend to KuCoin: USDT, BTC, ETH, EOS, LTC, XRP.
Coins participating in this Lending will be used in Margin trading (Lending, borrowing methods).
Hopefully in the near future, they will add more coins to Lending and Margin Trading to meet the diverse needs of the brothers.
Maybe you are interested in: What is lending? Things to know about Crypto Lending
IEO - KuCoin Spotlight
If only Binance Binance Launchpad, Huobi Prime Huobi, OKEx with OK Jumpstart, KuCoin also has KuCoin Spotlight - KuCoin token selling program.
In particular, participating players will be able to purchase tokens for IEO KCS projects at KuCoin.
Let's examine some parameters related to the price of KCS and the IEO:
5 IEO projects are MTV, TRY, CHR, COTI, TOKO.
$ 11.2 M USD raises capital while 11.2 million USD (KCS currency) was used to buy IEO in KuCoin. This may be a significant number compared to the total capitalization of more than 1 million USD of KCS at the time of writing.
Typically, each project calls for $ 2.24 M USD.
On average, the price of KCS increased by about 19% from the beginning of IEO news to the sale of tokens to IEO.
KCS is used as a direct currency to participate in the purchase of IEO tokens in KuCoin.
Maybe you are interested in: What is IEO? A Complete Guide to IEO Investments
KCS - KuCoin Shares
This is the part I want to mention more 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 say more.
First of all, for those of you who do not know, KCS or KuCoin Shares are KuCoin floor coins. When newly launched, KCS is often used only to reduce transaction fees in this exchange.
Up to the present time, with the expansion of the KuCoin ecosystem, KCS is becoming increasingly important and has many features in the ecosystem.
KuCoin also dedicated a page to introduce their KCS. However, I found out a lot more to say about this KCS. You can see the picture below to understand the KCS overview
Points you can expect at KCS in the near future:
KCS has a number of familiar applications (for floor coins) such as reducing transaction fees, up to VIP Levels, receiving incentives. Especially recently KuCoin launched Margin Trading & KuMEX. Both of these commercial products use KCS to reduce transaction fees. Hopefully in the future, their trading volume will increase, thus helping to increase the demand for KCS use.
Spotlight (IEO) underwent 5 IEOs, a total of $ 12.4 million in KCS currency was used. This has a 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 floor grows and earns more revenue.
In particular, KuMEX is a very interesting product. Not only is KuMEX trading profitable, but it also uses KCS as a transaction fee, which helps to reduce KCS traffic. From there the positive impact on its price.
Ps: Source photo all from Google
