Since the crash in the second week of May, the global cryptocurrency market has been erratic. However, despite the huge volatility, traders maintained their momentum despite harsh global scenarios and plummeting prices.
Meanwhile, KuCoin may be on the brink of upheaval, which could ultimately pose a challenge to major exchanges such as Binance or Coinbase. But what exactly triggers this spark?
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Repurchase targeting deflationary supply
Initially capped at 200 million tokens, the total supply of KuCoin (KCS) will be reduced to 100 million thanks to a vigorous takeover bid by the protocol. Deflationary supply invariably results in higher valuations.
Now, let’s pause to analyze this in more detail. What prompted KuCoin to persist with this takeover proposal despite the recent market decline?
According to a recent report, KuCoin’s total trading volume for both spot and forward transactions exceeded $1 trillion, with an average daily volume of over $11 billion. Meanwhile, KuCoin Spot hit $9 billion in daily peak trading volume, while futures hit over $15 billion.
Additionally, the exchange gained approximately 6 million new registered users in Q1 2022, a 491% year-over-year growth. And now, KuCoin serves 18 million global users in more than 200 countries and regions, an important data to show its reputation as “People’s Exchange”.
What does this represent? It is quite obvious that a buyback can further strengthen KuCoin’s operations and market position. Therefore, KuCoin may be poised to rewrite history due to its tremendous business spin-offs and expanding user base.
Guaranteed daily bonus
KuCoin developed the KCS Bonus as a new incentive for KCS holders and KuCoin ecosystem builders to earn passive income.
Simply put, users who 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 revenue.
What other protocol shares its transaction costs with its token holders? None, it seems.
Access to budding projects
The KuCoin Spotlight token launch platform helps early-stage crypto businesses raise capital and expand their presence within the cryptocurrency ecosystem.
It also offers users the opportunity to discover the next possible crypto gem and earn substantial income with modest entry requirements.
Since its inception, KuCoin has launched at least 20 related businesses. The value of the LUKSO (LYXe) project was multiplied by 187 after its launch. Other prominent examples include the 240x increase 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 capitalize on them over time.
Kucoin Burning Drop allows its users to earn crypto incentives by staking KuCoin tokens and engaging in crypto initiatives. It is one of the best Kucoin options to earn free crypto rewards.
Users can lock crypto assets or assign them to increase their computing capacity using this feature. According to Burning Drop statistics, the average project ROI exceeded 8,685%.
The Future Ahead: What’s Coming?
In the near future, KuCoin aims to establish a global payment system that can connect all projects within the KCS ecosystem. This global payment system will serve KuCoin’s global user base.
The plans encompass derivatives trading, new coin releases, stablecoins, borrowing, NFT transactions, and all other KCC ecosystem activities.
The upcoming payment system will lower the payment threshold, improve the convenience and efficiency of customer service, and expand the user base of the ecosystem.
KuCoin also aims to connect current and emerging mechanisms to accelerate the adoption of cryptocurrencies, such as decentralized identity management, NFT ownership and rights.
Additionally, it is expected that the team will soon begin developing a metaverse to connect its existing financial, entertainment, social, and other services.
Despite being the largest cryptocurrency exchange by trading volume, Binance has been criticized for its high trading fees. Additionally, Binance is notorious for numerous alleged crimes, including money laundering and unplanned downtime that resulted in significant investment losses.
Meanwhile, Coinbase has seen a decline in its share price over the past two months. Over the past 6 months, Coinbase (COIN) is down over 77% and closed the last trading session at $58.71.
And nearly halfway through 2022, KuCoin has reached another remarkable milestone by closing a $150 million pre-Series B funding from Jump Crypto, Circle Ventures, IDG Capital and Matrix Partners, which has increased the valuation of KuCoin at around $10. billion.
Is history about to be rewritten, and will KuCoin play a major role in the next chapter of cryptocurrencies?
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*Investment in crypto-assets is not regulated in some EU countries and the UK. No consumer protection. Your capital is in danger.