Investment rational for Kucoin Shares (KCS)

• Potential for at least x3 in next months.
• Protection against downsides thanks to its dividends.
• Dividends provides a diversified crypto portfolio acquired through dollar cost averaging.

Their website : https://www.kucoin.com
Their white paper: https://assets.kucoin.com/kucoin_whitepaper_en.pdf
My referral link to open an account : https://www.kucoin.com/#/?r=1aKg5

How it works
KCS is the token created by the cryptocurrencies exchange KuCoin. KuCoin share 50% of its trading fees with the holders of KCS, through the payment of daily dividends.

Reasons why KCS will triple in value
The more the volume increases on this exchange, the more dividends you receive.

1. Kucoin is the new Binance
   Like Binance, KuCoin is a fast, easy-to-use and secure platform (bank-tier encryption). Like Binance at its early stage, KuCoin lists cryptocurrencies that are not yet well know, not listed on big exchanges, with huge potential. Investors register more and more on KuCoin to buy these coins before they reach Binance and other big exchanges.

Like Binance, KuCoin has its own token. Binance’s token, BNB, reduces the trading fees paid by 50%. KCS also reduces trading fees, but to a lesser extent, based on the amount of KCS held. In addition, KCS allows you to receive 50% of the trading fees paid by users on the exchange, in the form of a daily dividend. So KCS has currently more utility than BNB and deserve a higher market cap.

1. Compared to BNB, KCS price has still loads of upside
   The price of BNB multiplied by 150 since its inception while KCS only multiplied by c. 30. KuCoin is not yet well know, with less than € 300 M of daily volume of transactions, but volume is increasing fast. You still have the chance to get on board early on, and enjoy the boom before it is too late!

2. KuCoin still open to registration while other exchanges are closed
   Binance, Bittrex, and Bitfinex are closed to new registrations. Kucoin is still open and should attract new persons. Hence, the volume of transactions should increase.

3. The dividend offers a buffer to the downside of KCS’ price
   As soon as the dividend yield reached the symbolic figure of 7% or above, it is likely that the price of KCS goes up as people are attracted by this high yield. This offers a buffer to price downside.

4. Dividends provides a diversified crypto portfolio acquired through dollar cost averaging
   KuCoin is a pure crypto exchange not providing fiat conversion. All the trading fees are paid in the crypto you are selling. For example, if you sell 10 bitcoins (BTC) to buy 160 etherums, you will pay 0,01% of 10 BTC = 0.01 BTC. KuCoin will share 50% of this 0.01 BTC with the KCS’ holders. KuCoin has more than 70 coins and share the trading fees of all the coins exchanged. The dividends you receive will create a well-diversified portfolio including some coins with huge potential. The daily dividend payment creates this portfolio through a kind of dollar cost averaging. This reduces the risk of buying at the highest point occurred when buying with a lump sum.

Target price: x3 in next months

If we invest for instance € 10.000, we can get 645 KCS at today’s price. We will then earn an annualised c. 7% dividend yield.

KCS price: €15.5
Amount you could buy: €10.000/€15.5 = 645 KCS
Volume of the day: €280.000.000 (source: https://coinmarketcap.com/exchanges/kucoin/ )
Trading fees collected: €280.000.000 * 0.2% = €560.000
Dividends paid: €560.000 * 50% = €280.000
Quantity of KCS in circulation: 91,043,000
Your dividends: 645*(290,000/91,043,000) = €2/day or c. €725 per year if annualised

Binance has managed to reach € 5.7 billion of daily transactions in 7 months. To be conservative, let’s say that KuCoin could reach half that, € 2.85 billion, by October 2018, that is in the first 12 months of its existence. The sharing ratio of the trading fees will have by then reduced to 15%. To maintain a 7% dividend ratio, KCS’ price will have to increase to c. €50, that is multiply by 3 in value.

While you wait for your coin to triple in value, you will receive dividends. Some of the coins received might multiply by 100 or more in value are some point. Many low market cap coins receive huge pump in price at some time.

Conclusion
Nice upside with limited downside. Once again, you still have the chance to get on board early on, and enjoy the boom before it is too late!

If you found that useful, please use my referral link to open an account : https://www.kucoin.com/#/?r=1aKg5

This is not an investment recommendation and is for information purpose only. Please do your own research before investing.