KuCoin Overview
- Business model: Crypto Currency Exchange
- Symbol: KCS
- Coin type: ERC20
- Token benefit: Owners will earn a share of revenues will come from exchange fees.
- Current issuance: 200 million, of which 100 million by the team and advisors. The founders and advisors will be locked until Sept 2018 and Sept 2021 respectively.
- Value: Good Customer service, Secure platform, Bank-level encryption
Opportunities for KuCoin
- KuCoin can grow as the cryptocurrencies market grows. The top 10 platforms in the world transact 10 million each with an average commission rate of 0.1% this a revenue stream of $100,000 per day. Fees on Poloniex start at 0.15% and on Bittrex at 0.25%
- KuCoin is focused on marketing, with many incentives for its users to promote Kucoin. This creates liquidity, community and fee revenues.
- Encryption and security of the platform is similar to banks, They use a system of macro and micro bank wallets.
- Strong business continuity and disaster recovery planning.
- Can transact more than 2 million transactions a second.
- Users holding KCs will
- Jointly be awarded 50% of the trading fees.
- Discounts on their trades
- 10% of the net profit will be used to buy back KuCoin coins until they buy 100,000 tokens.
- The Team seems to have a reasonable amount of experience in managing large projects.
- KuCoin has an emphasis on R&D, in the future, they plan to decentralise certain parts of the exchange.
- KuCoin offers Coin pairs before other exchanges do. This will enable them to capture market share.
- Deposits into the platform completed within 2 minutes and withdrawal within 10 minutes.
- Neo deposited on KuCoin receives GAS
KuCoin has a working exchange, this is a proof of value! Compared to many other ICOs this is a more solid value proposition.
Users can recommend their friends to KuCoin, by doing so they will earn a slice of their trading fees. -
KuCoin’s referral system, gives 40% of trading fees to the users. according to this announcement: https://news.
kucoin.com/en/kucoin-will- launch-invitation-bonus-plan- on-1st-october/
Concerns about KuCoin
- KuCoin is an exchange based in HongKong, although is not part of the business regime of China, it does fall under Chinese rule.
- KuCoin will not be a fiat gateway
- Exchanges are a very competitive market, with the likes of Exscudo and on the verge of being launched. KuCoin needs to work hard on their competitive edges to make this a success.
- Many pairs are already trading in established markets, with key market makers comfortable with the level of security these alternative exchanges provide
- KuCoin could have benefited from a name which describes their value proposition better.
Conclusion
The strong focus on marketing is a big bonus to create liquidity on KuCoin, users are incentivised to hold the KuCoin and to buy their cryptocurrencies on this exchange. It has an easy to use interface with a focus on making trading easy.
