Can Kucoin Shares make you rich? My Feb 2018 overview
We all know that by holding Kucoin shares, Kucoin pays back some of the collected Fees to their KCS holders, called Kucoin Bonus!
But is it worthwhile?
My Kucoin shares
At the moment I'm holding 81 KCS but on the first of February it was only 52. I did puchase some extra KCS at the 20th of February, increasing my holdings to 67. On the 23th I did expand this to 81.
My total investment in KCS is just a little bit above 500 euro. The average book price in my case is 6,23 euro.
The current value of my KCS is only 243 euro.
Daily Volume
Not only the amount of KCS you have is important but also the daily volume of Kucoin.
This is where the problem lies. Around the 15th of January the Kucoin daily volume was almost $100 million and Kucoin climbed to the top 15 of exchanges.
Now they only have a daily volume around $60 to $65 million.
So why did the volume drop so hard? There are several reasons for this. The major important reason, according to me, is that Kucoin did loose some trust. They cancelled their referral program without prior notice and the pay-out of the GAS and KCS was problematic. The most important thing for an exchange (besides the security and technical part) is trust.
The other reason is ofcourse the bear market which did pop up.
My payout in February
In total a whopping (please be seated) 1,02 euro.
If I do covert it to BTC it would be 0,00011155 BTC.
Kucoin pays out this dividend in the coins in which the fee was collected. In February they did give me a pay-out in 120 different coins.
The best coins of course were: Bitcoin (0,38 euro or 0,00004141 BTC), Ethereum (0,20 euro or 0,00002247 BTC) and NEO (0,03 euro or 0,00000403 BTC).
Based on these number the total year pay-out would be 13,30 euro. A ROI of 2%.
The problem
Most of the pay-outs in the coins is below the trading threshold. For most smaller coins the minimal trade amount is 10 coins. For most coins this number will not be reached with the current KCS holdings.
So if you do want to cash these, a lot of work has to be put into in. By first buying enough coins so that the dividend coins can be sold. For the moment I'm not planning to do this exercise.
But what will it be in the future?
Kucoin is in my opinion still one of the best exchanges. The crypto market is still in the early phases, so a lot of have could come to the exchanges, from which Kucoin also will profit.
Kucoin is also improving the payout proces of the Kucoin Shares and the Gas rewards. Which is a good sign and should increase their trust a little bit.
When Kucoin decides to open up the referral program, a raise in volume can be expected. So the pay-out will also rise!
My advice
The price of the KCS is low, really low at the moment. I my eyes too low for the future that Kucoin has!
But if you do want to step in, buy enough shares. Don't buy shares for the payout, consider this a nice side effect, but do buy shares with a selling plan in mind!
At the moment I'm not in a position to sell my KCS, cause by doing that I would loose to much money. I will stick in there and probably will try to increase my holdings, trying to bring down my average book price.
If the price of KCS drops below 2.8 euro, I will be doing this. Expanding my holdings to 150. This should make it easier to collect enough coins to be sold, decreasing my losses.
When the price then doubles up I will be selling 50 again, so that my target of 100 is reached at an acceptable price.
So, the answer to the original question: No it is not worthwhile based on the kucoin bonus, but at the moment it is worthwhile based on the current KCS price!
What are your ideas about Kucoin?
Keep the faith,
Peter
I had KCS but when I have find out that they gonna lower their payout from 50% to 15% in the future, I sold my KCS. Plus I don't like payout in dust of dozens of coins. OBITS have payout in bitUSD and it is much better to receive payment in one coin so it is easier to reinvest or buy something else.
Being paid out in different coins is really a hassle. If I do want to cash them, I will have to buy first the number of minimal required coins, to sell them again. For the moment I will not try this out.
It does stand in their whitepaper that the ultimate goal for them is to lower the pay-out to 15%, but I don't think that they will do it for the moment. It is possible that they will do it, when the volume is so high that it won't differ!
I will look into OBITS. Thx for the tip!
Does it sound fair that they will lower when volume goes Up? So when volome is UP and you should profit from holding KCS and believing in it, we will lower your payments because we want to earn more... Thanks but NO thanks...
I understand your viewpoint and it is 100% correct. I did buy an extra batch of KCS to lower the average book price, cause, besides all starting issues, I do find it a great exchange. When the market starts boomin again, the KCS price should also increase and I can sell at a profit and still leaving some KCS behind.
From business point of view, you payout will not decrease but be at the same level, while Kucoin is increasig their profit, not sharing it with the KCS holders. From their side it is a great business plan. You did your research wel and did draw your conclusion and stepped out. I did mine and decided to stay on board. Both valid choices in my opinion.
So no it is not fair! But I know what I can expect!
Thx for your viewpoint, this is what makes Steemit great. Discussion to enbroaden our knowledge and share ideas!!!
Edit: sorry not te able to upvote your second reply, cause it deserves it but I’m running out of SP. Already below 75%! Hope you understand.
I am at 55% but I don’t care 😀 I like discussing with you 😀
😂 👊
Definitely my favorite exchange. Lucky to have bought at less than 1 USD but wish I had bought more and sold some at $20 to buy more at $4
Like always I was way too late 😔
How many do you have if I may ask?
Nice, thanks for sharing, I m holding some KuCoin shares, and exploring this project, so this is my opinion:
I agree with the vol droping. Last 3-4 days it was around 50 mln, USD/day. But overall volumes in the whole crypto space has been droipping since the peak time on last year's December. So I am not that worried about vol currently. Ofc more volume, more fees and more dividends we would get.
The exchanges are being created almost on a weekly basis. So the competition is fierce in that field. But I trust the KuCoin team, looks like they have tons of experience, and hope they will keep using it.
Taking into account that total max KuCoin supply is 200 mln shares, and in the future they will start share buyback (from the profit they collect on fees), this will bring the supply down to 100 mln, which is very very low, comparing to similar projects. Or even comparing to other projects in total. So the current price 4-5 USD, is very very cheap. Mainly must be influenced by overall crypto market moods.
Very important point: I see the KuCoin team is working very hard, they are adding new coins almost on a daily basis. This gives more exposure to the exchange, as some people interested in particular cryptos, so if that is listed on KuCoin, they are opening account there, and exploring all the possibilities there. So I think KuCoin is in rapid expansion right now. And this will take some time to make things right (increased number of members, coins, volume, etc etc..)
Overall I am positive about this project, and I will invest some more money into KuCoin, soon very soon!
Thx for your insight! We are on the same page!
Very informative article! I upvoted and follow you! Well as i use kucoin exchange i m glad to read these extra infos! I have some kcs around 15 euros value today and i plan to buy more slowly for next two months. Do you think it worth? And there is one more question a bit out of topic but related to kucoin; Yesterday i withdrawed 0.00055 BTC from Coinpot to my kucoin BTC address. Today at this time these BTC are still not comming. When i check the Coinpot system i see that the transaction is completed but still i see nothing in my kucoin account. I dont think is a probleme of kucoin, i think its Coinpot's scam... what do you think about?
Thanks have a nice day! Ah, yes i ll resteem your post as it is really useful for ppl using kucoin.
It could also be that the transaction does not have enough confirmations yet. I never had a problem with depositing BTC to Kucoin. You can always ask customer support.
Considering KCS: as you can see in the other comments, a lot of people do have faith in Kucoin. If kucoin can do what it promised in their white paper and become a top 10 exchange, it could be worth it.
If not, the value of KCS should rise, so you probably can still step out with a profit!
Thx for dropping by!
Thanks! let's see, i feel that it will be among the top 10 exchangers soon...! Have a nice day always!
Hi! :)
I upvoted and followed you.
Follow back and we both can help each other succeed at Steemit. I regularly write detailed posts about crypto.
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