- KuCoin Token (KCS) offers users discounted trading fees on its platform, with a deflationary total supply designed to potentially increase value over time.
- Despite its utility and incentives, KCS’s performance seems tied to Bitcoin’s market movements, suggesting correlation with the broader crypto market.
Since its inception during the Bitcoin hype of 2017, KuCoin has made significant strides as a cryptocurrency exchange. With a regulatory base in the Seychelles, the platform has evolved into a hub for spot, margin, and futures trading, alongside offering staking, lending, and trading bots. At the center of its ecosystem is the KuCoin Token (KCS). Let’s take a closer look in a quick review.
KuCoin Token (KCS): Not Just Another Exchange Token?
The KuCoin Token, abbreviated as KCS, is classified as a utility token. Its primary function within the platform is to reduce trading fees, which are already competitively set at 0.1% for spot trading. Holding KCS tokens further slashes these fees by a substantial 20%. Here’s how it works:
Logged-in users on the exchange simply click on their profile avatar and navigate to the
“KCS Pay Fees”
option. Activating this feature turns it green and subsequently, KCS tokens are automatically employed to cover trading fees from the user’s wallet.
Tokenomics and Performance
KCS’s tokenomics are defined by a deflationary approach. The currency launched in 2017 with a supply cap of 200 million units, which is programmed to halve until it reaches a final tally of 100 million. In theory, such a reduction in supply should elevate the token’s price in response to increasing demand. However, this hasn’t entirely panned out as expected.
Far from its all-time high of $23.90 on November 15, 2021, KCS’s value hovers around $4 at the time of writing. Yet, it’s noteworthy that KCS price movements strongly correlate with those of Bitcoin, mirroring a trend common among many altcoins.
This performance trend suggests that while KCS offers utility within the KuCoin ecosystem, its market valuation is not immune to the overarching currents that sway the cryptocurrency landscape, often led by the seminal digital currency, Bitcoin.