Altcoin Spotlight: KuCoin Token
Here at MintDice.com we are committed to your education when it comes to cryptocurrencies and all of the available altcoins available. Thus, we have created our altcoin spotlight which has profiles of all of the cryptocurrencies which have appeared at some point in time, in the top 60 on CoinMarketCap.com.
Not all of these cryptocurrencies are winners, and sometimes one my appear in the top 60 only to later disappear entirely. We are just here to deliver information so you can make informed investment decisions.
This week, KuCoin token reached the top 60 cryptocurrencies for the first time ever, though this exchange-based currency has been around for a while. Read on to learn all about KuCoin Token.
What is KuCoin Token?
KuCoin token is the native cryptocurrency and utility token of the KuCoin exchange. Similar to BinanceCoin, KuCoin token can be used to complete various tasks on KuCoin. Some of these include paying transaction fees, receiving bonuses for platform use, and more. KuCoin is a method of profit sharing used by the company behind the exchange, allowing individuals to receive some of the income from their regular involvement on the platform.
Those who hold 6 or more KCS receive a daily dividend in exchange for allowing their token to be used to settle payments on the platform. The amount of the dividend is found by taking 50% of the daily income of the platform, and dividing it between all holders with 6 or more KCS.
There are plans in the future to expand the KuCoin platform and the uses for the KuCoin Token. Exact specifics about this expansion is currently not available though the creators of KuCoin have mentioned adding a full range of DeFi products, including cryptocurrency lending, in the future.
What is KCS?
KCS is the symbol used to recognize KuCoin Token on trading exchanges. It is possible to buy KCS on numerous DeFi trading platforms though we find the best place to buy is on the KuCoin exchange itself.
How Does KuCoin Token Work?
KuCoin Token is an ERC-20 token, created to be easily transferable between platforms. When it was first created, the total supply of KuCoin token was 200 million tokens, with a planned buy-back/burn mechanism until only 100 million tokens remains in circulation in order to keep the token deflationary.
In terms of security, KuCoin uses a transaction cluster mechanism to protect consumer information.
Who Invented KuCoin Token?
KuCoin Token was invented by the creators of the KuCoin exchange, which is headquartered in the Seychelles. Founded in 2013 by Eric Don, Jack Zhu, John Lee, Kent Li, Linda Lin, Michael Gan, and Top Lan as a joint project, the KuCoin Exchange officially launched in 2017.
Should You Buy KuCoin Token?
As far as utility tokens go, KuCoin certainly isn’t the worst option out there. The KuCoin Exchange is fairly reputable, and while we don’t use it ourselves, we are reasonably certain that it isn’t a scam.
With that in mind, we only recommend buying KuCoin if you are a regular user of the exchange or plan to be. This is because utility tokens like KuCoin token, have very little use outside of their native platform. While there can be occasional investment opportunities, they are often few and far between, and it is better to carry a more widely applicable token like Ethereum.
Additionally, though KuCoin Token offers staking options, we aren’t sure how well to platform will perform overall in a space which has numerous similar platforms. KuCoin is small compared to Binance Exchange, which also has their own token which is number 5 in terms of market capacity—giving it far more reach than KuCoin Token.
That’s not to say that KuCoin Token won’t become more popular over time, as this is the first time it has appeared in the top 60 charts while we have been watching—and who knows—it might continue its trajectory. It is a huge unknown however, and very risky to invest if you aren’t familiar with the platform.
So, if you have read all this and still think KuCoin might be a good investment for you, then we recommend setting up an account on the platform before investing. This will also allow you to stake your KuCoin Token and to get the most for your investment. Just make sure, as always, you never invest any money you don’t intend to lose.
Where Can You Buy KuCoin Token?
KuCoin token is available on a number of reputable exchanges. As it always goes with utility tokens, we recommend buying KuCoin directly on the KuCoin platform, considering it is most useful for those using the platform regularly. That being said, there are a few other reputable locations for purchasing KuCoin token, and they are as follows:
· Bybit
· MEXC
· AscendEX
What Can You Do With KuCoin Token?
Outside of the KuCoin Exchange, there aren’t many uses of the token. While it can sometimes be staked on other platforms, if you intend to hold the token for the dividend benefits, it is best to do that directly on the KuCoin platform.
This is why we only recommend purchasing KuCoin token if you are a regular user of the KuCoin platform. If you are not, we find it is far more beneficial to buy Ethereum for the staking benefits over KuCoin Token. But if you can’t afford enough Ethereum to stake or join a staking pool, KuCoin can be an excellent alternative with a lower barrier to entry. Remember, 6 KCS tokens are required to stake KCS.
Overall, KuCoin is a reputable utility token with a long history of viability. While its use as a utility token doesn’t make it a good investment for everyone, it is one to consider if you are looking for the ability to stake without investing in Ethereum. Just remember that no matter how reputable an investment may seem, investing in cryptocurrency is always risky and you should never invest any money you don’t intend to lose.
