KuCoin is taking crypto trading to next-level: Can it surpass Binance and Coinbase?

By: Ankish Jain
on Jun 12, 2022
  • KuCoin's total trading volume for spot and futures trading topped $1 trillion
  • Users that hold at least six KCS on the KuCoin platform are eligible for a daily bonus
  • KuCoin aims to establish a global payment system that can link all projects inside the KCS ecosystem

Since the meltdown in the second week of May, the global cryptocurrency market has been erratic. However, despite the tremendous volatility, traders maintained their pace despite stringent global scenarios and plummeting prices.

Meanwhile, KuCoin may be on the verge of upheaval, and this might ultimately pose a challenge to top exchanges such as Binance or Coinbase. But what’s precisely triggering this spark?

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Buyback aimed at deflationary supply

Initially capped at 200 million tokens, KuCoin’s (KCS) total supply will be reduced to 100 million through a vigorous buyback offer by the protocol. Deflationary supply invariably results in increased valuations.

Now, let’s pause to analyse this further. What prompted KuCoin to persist with this buyback proposal despite the recent market decline?

According to a recent report, KuCoin’s total trading volume for spot and futures trading topped $1 trillion, with an average daily volume of over $11 billion. Meanwhile, KuCoin Spot hit $9 billion in daily peak trading volume, while Futures reached over $15 billion.

In addition, the exchange gained approximately 6 million new registered users in the first quarter of 2022, a 491% growth year-over-year. And now, KuCoin is serving 18 million global users in 200+ countries and regions, a significant data to show its reputation as “People’s Exchange.

What does this represent? It is pretty apparent that a buyback can further solidify KuCoin’s operations and market position. Hence, KuCoin may be on the brink of rewriting history because of its extraordinary trading spin-offs and expanding user base.

Guaranteed daily bonus

KuCoin developed the KCS Bonus as a novel incentive for KCS holders and KuCoin ecosystem builders to earn passive income.

Simply stated, users that hold at least six KCS on the KuCoin platform are eligible for a daily bonus derived from 50% of the company’s daily trading fee earnings.

Which other protocol shares its transaction costs with its token holders? None, it seems.

Access to budding projects

The KuCoin Spotlight token launch platform assists early-stage crypto ventures in raising capital and expanding their presence within the cryptocurrency ecosystem.

It also offers users the opportunity to discover the next possible crypto gem and earn substantial revenues with modest entry requirements.

Since its inception, KuCoin launched at least 20 related ventures. The value of the LUKSO (LYXe) project surged 187-fold after its launch. Other prominent instances include the 240-fold rise in Victoria (VR) and a 299x ATH ROI for ClearDAO (CLH).

This upward trend demonstrates how beneficial Spotlight initiatives are for KCS holders to identify projects at an early stage and benefit from them over time.

(Source: Happyblock)

Burning Drop

Kucoin burning drop enables its users to earn crypto incentives by staking KuCoin tokens and engaging in crypto initiatives. This is one of the top Kucoin options for earning free crypto rewards.

Users may lock crypto assets or assign them to boost their computational capacity using this function. According to Burning Drop statistics, the average ROI of projects surpassed 8,685%.

(Source: Happyblock)

The future ahead: What’s coming next?

In the near future, KuCoin aims to establish a global payment system that can link all projects inside the KCS ecosystem. This global payment system will service KuCoin’s global user base.

The plans encompass derivatives trading, new coin releases, stablecoins, borrowing, NFT transactions, and all the other KCC ecosystem activities.

The upcoming payment system will lower the payment threshold, improve the convenience and efficacy of customer service, and expand the ecosystem’s user base.

KuCoin also aims to bridge the present and emerging mechanisms for accelerating the adoption of cryptocurrencies, such as decentralised identity management, NFT ownership, and rights.

In addition, it is anticipated that the team will soon begin developing a metaverse to connect its existing financial, entertainment, socialisation, and other services.

Verdict

Despite being the largest cryptocurrency exchange by trading volume, Binance has been criticised for its high trading fees. In addition, Binance is notorious for many suspected crimes, including money laundering and unplanned downtime that resulted in significant investment losses.

Meanwhile, Coinbase has witnessed a downcast journey in its share price over the past couple of months. During the past 6-months, Coinbase (COIN) declined by more than 77% and closed the last trading session at $58.71.

And Nearly half of 2022 has passed, KuCoin has reached yet another remarkable milestone of concluding a Pre-Series B Funding of $150 million from Jump Crypto, Circle Ventures, IDG Capital, and Matrix Partners, which has boosted KuCoin’s valuation to the region of $10 billion.

Is the history on the verge of being rewritten, and will KuCoin play a major role in the upcoming chapter of cryptocurrencies? 

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