KuCoin (KCS) token is the proprietary coin of one of the top cryptocurrency exchanges KuCoin. But, is it enough to buy KCS?
With the digital token serving many key functions in the KuCoin ecosystem, investors who trade on the exchange might consider buying the token. Known formally as KuCoin Shares, KCS is a profit-sharing token that allows its holders to get passive income.
Even though its value has taken a beating in the last few months, KCS is still a token worth looking into.
This article explores what KCS is all about, the roadmap, and if this recent rally might be a great time to buy KCS.
KuCoin Token: Profit Sharing Structure
Built on the Ethereum blockchain as an ERC-20 token, KuCoin Shares was launched by the KuCoin Bitcoin exchange in Oct. 2017. It was created as a profit-sharing coin to draw value from the underlying exchange. This was also done to attract crypto investors to the emerging crypto marketplace.
Just like traditional stock dividend payments, KuCoin pays holders with up to 6 KCS. However, the difference lies in the payment periods. KuCoin pays KCS holders a daily dividend and this is derived from 50% of the exchange’s daily trading revenue fee.
Aside from serving as a dividend incentive, KCS performs the more traditional native utility token duty. It’s also used to pay for trading fees on the KuCoin Exchange. KCS holders also enjoy trading discounts of up to 80% on all their trading activities.
Meanwhile, it is also used in token sale on the KuCoin Spotlight, alongside the LockDrop/BurningDrop on the platform’s Pool-X portal.
KuCoin is planning to upgrade the functionality of the KCS from just being a governance token. KCS will play a key role in the development of the upcoming KuCoin decentralized exchange (DEX) and its KuChain. It will also serve as the platform’s future token as it rolls out more decentralized products in the future.
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KCS: Recent Rally A Boon For Investors
KCS trades well below the top 50 cryptocurrency chart and has a market cap of over $876 million. With only 47% of its token in circulation, KCS is still a token investors are snapping up.
At press time, KCS is trading at $11.276, up 40% on the 24-hour trading chart. This remarkable one-day rally has attracted investors and many want to buy KCS.
However, this is not the best price action of KCS since its inception.
Surging to an all-time high (ATH) of $18.8, KCS has seen its value dip to as low as $0.6 at the beginning of 2021. However, the ERC-20 token caught a major tailwind during the April boom rising close to its previous ATH and settling on $18.78 before dipping 30% to $14.9 in May.
It was not able to rally to its previous high and traded below the resistance zone of $14.9.
KCS Technical And Fundamental Analysis
On the trading chart, the asset is trading well above the 20-day moving average (MA) support at $7.564 indicating a bullish run. However, the relative strength index (RSI) is in the overbought region currently standing at 73.77, and does not look like it will be plateauing anytime soon.
KCS’ RSI gradually picked up in early July when it stood at 44.01.
A market correction should soon cause it to drop lower. A high RSI should not deter you to buy KCS if you want to. It clearly shows that many investors are aware of the token.
Market analysts are also bullish with Digitalcoin predicting that one KCS will likely change hands for $16.53 before the year runs out. A year’s forecast puts the token at $19.31 while a seven-year prediction puts it at $49.14 by 2028.
Wallet investor is even more bullish with its six months’ forecast putting it at $24.351. A five-year prediction puts it at $90.433.
The KuCoin Exchange has also launched its Kucoin Community Chain (KCC) which will allow the low-cost migration of decentralized applications (DApps) and tokens from Ethereum to the KCC. According to the development team, KCC is geared towards providing users with a ‘faster, more convenient and low-cost experience.