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Safe Trading and Passive Income: What is KuCoin?

By Inkarias - 2019-11-18

What is KuCoin?

KuCoin is a cryptocurrency trading platform. Its distinctive features are an exceptionally wide range of crypto currencies as well as a user loyalty system based on its own native cryptocurrency, the KCS coin which offers some benefits for the holders and traders. KCS also have the particularity to be based on the Ethereum network as a token ERC20 and thus benefit from Ethereum scalability and solid technology.

Coin Specs

Ticker: KCS 
Type: Token ERC20    
Circulating supply: 82 363 551 KCS
Max supply (before burns): 200 000 000 KCS
Current max supply: 172 363 551


KuCoin is a well reputed Hong Kong-based cryptocurrency exchange distinguished by its native currency,the KuCoin shares (KCS), offering a lot of benefits , and its exceptionally wide list of crypto-currencies. Since its creation, KuCoin has made a name for itself on the trading platform market, especially thanks to the completely innovative rewarding strategy of holding its own crypto. This system incentives buyers who want to hold coins to buy more shares and benefit from it. The Kucoin token, KCS or Kucoin Shares, has a total volume at issuance of 200 million, and, following the planned buyback disposal stated by the team, the final amount of circulating coins will remain at 100 million tokens.

KCS Ststs

A minimum of 10 percent of each quarter’s net profit will be allocated by the team to buyback KCS that will be destroyed immediately thus decreasing existing supply and bringing more value to the currency. 

The Initial Coin Offering occurred in three stages. The first phase accounted for 35 percent, about 70 million tokens, and involved issues for the founders. The second phase was for industry stars, consultants, and angel investors, accounting for 15 percent or 30 million KCS. The final, third phase, was for all users, and this public ICO accounted for the remaining 50 percent or 100 million KCS. The KCS issued by founders within the first phase undergo a lockup period lasting four years and end on Sept. 2, 2021. In addition to this community-oriented vision, KuCoin offers a useful set of graphics, which is powered by the TradingView system, to suit more targeted crypto holders and professional traders. The fees applied on the platform are also quite reasonable and lower than those of many other exchanges. 

The Kucoin exchange is available both on browser and mobile based systems (iOS and Android).

Advantages of Kucoin exchange

Competitive fees and allocation

Kucoin aims to always offer very low fees, both for trading and withdrawals operations, making the exchange really easy to use for everyone. There is no fee to make a deposit, and the trading fees are only 0.1%, based on the chosen asset. Furthermore, holding KCS directly on the platform also bring benefits and potential discounts on current trading fees.

The fees for a withdrawal depend on the specific cryptocurrency. It is important to note that the vast majority of Kucoin’s fees, which are already minimal, go back to the users. Ninety percent of the total trading fees are returned to users in one way or another, with Kucoin retaining only 10 percent of trading service fees. The largest portion, 50 percent of the fees, goes to users with KCS in their accounts as their Kucoin Bonus. They then share the other 40 percent via the referral system based on invitations.

Various assets listed on the platform:

Kucoin uses an underlying state-of-the-art technology that supports an infinite number of cryptocurrency trading pairs. The initial list included ETH, BTC, and USDT markets, but also trading pairs with various ERC20 tokens, NEO, KCS, and LTC. Since its creation, this list has grown a lot and Kucoin is now offering more than 400 trading pairs with a powerful API interface facilitating integration.


Financial system stability

Kucoin has levels of stability typically reserved for financing sectors. The underlying financial system’s design inspired the core exchanging system with its multi-cluster and multilayer architecture. Kucoin also takes precautions like those of banks, including three centers and two locations to be disaster proof.

Withdrawals under a certain amount are processed in a matter of seconds, and larger withdrawals only take about 10 minutes at the most. Deposits are completely done within just two minutes.


Financial safety and security

Wallets within the Kucoin platform have multiple security levels to fit the storage scale in question. The micro-withdrawal wallets are stored in a private network architecture built using Amazon Web Services Cloud, which allows the wallets to take advantage of that cloud’s multilayer firewall. The documentation for wallets itself has industry-level multilayer encryption. Macro-wallets are typically stored within the bank.


Million-Level Throughput for the Core Trading Engine

The memory matching technology is highly efficient and accelerated by hardware. The peak order-making value of this tech is 2 million+/second with a peak order-processing value of 1 million+/second. The result is no lags or delays during core order processing, even during a market boom like we have seen in 2017. The system is robust and completely operational to support a high charge for a long duration of time.


Operation Strategies

Kucoin’s operation strategies are also worth mentioning, as the operation team works on large-scale and long-term offline and online promotion and operations. Most of the commission from the exchange is rewarded to users who are active and exchange, promote, or invest in Kucoin.


Fees reduction for holders

KuCoin offers the unique opportunity to hold KuCoin shares (KCS), the platform's native cryptocurrency, which users can hold to receive trading discounts and dividends from trading fees collected on the market. Holders receive a 1% discount on trading fees for every 1,000 KCS they hold, up to a maximum of 30%.


Kucoin Shares Holder benefits and bonuses

KuCoin Bonus

The dividend system is what distinguishes KCS and KuCoin from other cryptocurrencies. KuCoin pays 50% of all platform fee revenue every day, which is evenly distributed among all KCS chips held on the platform. This means that a user who holds more than 1,000 KCS receives both a discount on all transactions on the platform and a passive income on a daily basis. KuCoin shares can also be traded with several cryptocurrencies.


Lockup and Cash Back

For users who hold KCS and expect to lock KCS, users need to withdraw the KCS to LOCKKCS via the withdrawal page. Users can lock KCS at any time during the predefined period announced by Kucoin core team and lock KCS for 90 days from the date of lockup. The minimum amount for single lockup is 200 KCS. The daily maximum lockup amount per person is 10,000 KCS while the daily maximum lockup amount for the entire platform is 500,000 KCS. When the total lockup amount reaches 5,000,000 KCS, users will not be able to lock their KCS at all. The highest annualized rate of return is up to 50%, with a minimum of 35%. The earlier users lock KCS, the higher the rate of return they will get. Finally, users can also get 10% of the friend's revenue as a referral reward that will be distributed after the referee's lockup period expires.


Invitation Bonus

To encourage further growth of Kucoin, those who register receive a bonus for inviting new users. The user who sends the invitation will receive a portion of trading fees accrued by the invitee. This has a pyramid effect, so users can accumulate bonuses for person they referred on the platform. This feature guarantees a solid passive income depending on the wealth in KCS of a specific user.

In order to promote the diversity of KCS ecosystem, enrich the rights of KCS users, and increase the market potential of KCS, KuCoin had introduced the KCS Lockup, Cash Back and Burn Plans.


KCS Burn Processes

KuCoin also provides a service for repurchasing the user's locked KCS at the price of 10% off the average KCS price (pegged on UDST price) on the day of the user's lockup. Users can apply for repurchase services on their own. To do so , users must transfer the unlocked coins to BUYBACKKCS address before midnight on the day of unlocking and then KuCoin will calculate and issue USDT within 3 working days.Timeout is considered as abandoning the repurchase opportunity. If user trades, withdraws or deposits any KCS, he/she is considered as abandoning the repurchase opportunity. KCS unlocked in advance cannot apply for repurchase. If the amount of applications for repurchase KCS exceeds the amount of locked KCS, the excess is considered invalid and KuCoin will return the coins.


Pool X platform

Pool-X is a next generation PoS mining pool open for everyone. The platform supports lockup-crypto transactions and aims to innovate the future development of the PoS ecosystem. Services offered by Pool-X include, but are not limited to liquidity trading market, node integration, and operational solutions. The proof-of-liquidity system (called POL) serves the role of credits for Pool-X, helping to record the flow of liquidity certificates and working as a payment method for liquidity bids. Initially, POL was created to cope with the inadequate liquidity of staked crypto assets.

The official site of Pool-X can be found here: http://pool-x.io

Platform Business Workflow
Platform Business Workflow - https://pool-x.io/platform_introduction

Pol credits and staking

The pool-x platform, launched by Kucoin , is running a lock up program of TRC20-USDT to get POL credits for a total of 6 rounds. Users can deposit funds to the specified address via their own KuCoin account. This is an important step as the funds sent from another source may fail to pass the verification for the POL lockup and cannot be returned to the original address.

The LockDrop incentives users to participate earlier as more POL credits can be obtained depending on the round bonus. The lockup amount required per person is at 500 USDT minimum and 2,000 USDT maximum. Lockup amounts below the minimum limit or above the maximum limit are not accepted. When users lock up funds via KuCoin’s withdrawal page, if the system prompts “Invalid withdrawal address”, it means that the phase has not started or is completed. Also, if the system prompts ‘Withdrawal failed’, it means that the entered lockup amount does not meet the min. or max. requirements or the lock limit for the round has already been achieved. Users can also benefit from pool-x which offer to stake POL via a POS node to participate in the voting of platform governance and the validation of data.

The program is divided into 6 rounds:

Round 1: 300,000 USDT MAX with x1.30 rewards => Completed

Round 2: 400,000 USDT MAX with x1.20 rewards => Completed

Round 3: 500,000 USDT MAX with x1.15 rewards => Completed

Round 4: 500,000 USDT MAX with x1.10 rewards => Completed

Round 5: 600,000 USDT MAX with x1.05 rewards => Completed

Round 6: 700,000 USDT MAX with x1 rewards => Running from November 21, 22h to November 22,22h (UTC+8).

kucoin logo

Useful links


Masters of Nodes do not recommend investing in any coin. Always do your own research.