Research Report Summary

What does this crypto do?

KCS holders receive 50% of the revenues earned from the Kucoin exchange

Why is this crypto unique?

Kucoin is the pioneer of the exchange fee split coin with the most proven platform. With current daily volume ranging between $50-100M, KCS holders receive daily payouts of over 50+ coins. It is a unique opportunity to create a mini, diversified portfolio similar to an ETF

Rating

We rate KCS a 3 / Hold. The exchange engine, UI and coin selection are generally great, and the added fee split makes Kucoin one of the top exchanges. However, the ongoing issues related to missing payouts, delayed payouts, and overall lack of communication from the management team is very unprofessional. These issues are likely part of growing pains, but until management fixes the payout issues, we do not recommend purchasing KCS

Investment Highlights

• Daily fee split paid to all KCS coin holders based on 50% of exchange revenue
• Kucoin has aggressively added new and unique coins that are not accessible on any other major exchanges, such as DBC, DRGN, etc.
• Extremely simple and sleek UI compared to the competition
• Constant stream of trading promos with huge rewards (cash, cryptos, Teslas)

Investment Risks

• The fee split can be reduced below 50% at any time
• The management team lacks communication (especially in English) and abruptly cancelled the referral program without notice
• The coin might be considered a “security” by governments because it pays out dividends, which would create significant regulatory issues
• Significant competition against decentralized exchanges, no-fee exchanges and potential projects such as FairX and WorldBook

Competition

• Binance: major global exchange averaging over $2B volume per day. The BNB coin does not offer a fee split, but instead offers reduced trading fees
• Coss.io: an up-and-coming exchange with a 50% fee split and a merchant gateway. However, the exchange engine is extremely weak and crumbles under minimal volume
• Blocknet: decentralized exchange with a fee split and staking

Market Sentiment

• The payouts for holders of KCS are seemingly random and unreliable. Payouts appear on some days, and sometimes they appear after waiting weeks. On the bright side, Kucoin does payout GAS for holding NEO, while many other exchanges don’t
• The addition of NANO on Binance hurt Kucoin’s short term competitive advantage
• The Kucoin reddit is mostly filled with complaints and issues

Disclaimer: At the time of writing, several team members at Coinonomic own positions in the cryptocurrency. We are not directly affiliated with the Company and we are not receiving compensation for this research report. We are not financial advisers and this does not constitute investment advice.