Just 5 months ago, a brand new cryptocurrency exchange called Binance was released. It started of small, but in just 5 months, it has managed to surpass Bittrex, the world’s biggest cryptocurrency exchange in terms of volume/24hr. (source: https://coinmarketcap.com/exchanges/binance/ )

This was thanks to Binance’s brand new business model, agressive coin listings, marketing and trade competitions. Another interesting thing about binance is its token, BNB. BNB has grown 50x since its release. Its only utility is to save 50% fee’s, if you pay them with BNB.

Now Kucoin takes this a step further with their own token, KCS. Kucoin charges a 0.1% fee from every trade, both from the taker and the maker, totalling 0.2% fee’s per trade. 50% of this fee (0.1% per trade) goes directly to the holders of KCS!

As I am writing this, the volume on the Kucoin exchange is $23 million (3–4x from two weeks ago), and it is rising every day. Now what does this mean for you, if you decide to buy $10k worth of KCS? Let us crunch the numbers:

Current Price of KCS: $0.9

Amount KCS you can buy: $10,000/$0.9 = 11,000

Daily volume: $23,000,000 (source: https://coinmarketcap.com/exchanges/kucoin/ )

Fee’s collected: $23,000,000 * 0.2% = $46,000

Dividents paid out: $46,000 * 50% = $23,000

Circulating supply of KCS: 100,000,000

Your share of the dividents: $23,000*(11,000/100,000,000) = $2.53/day

So with Kucoin’s current 24hr volume, you’ll get a divident of $2.53 every day. Now that doesn’t sound as much, but hear me out here. Kucoin expects to be a top 10 exchange by summer 2019. At that point, they would have to have a 24hr volume of way over $1bn, meaning atleast a 40-fold increase in volume, and that’s right, dividents!

Your dividents by that time would actually be $100+ a day!

Now, here in Denmark where I live, I can live pretty comfortably for $3100 a month. But it doesn’t stop here.

KCS is directly correlated with the popularity of the exchange. If volume goes up, you can expect KCS to go up in price as well. In 2 years your KCS will probably be worth atleast 50-100x more than today. This is also why it is a good time to buy now, not when they reach $1bn volume. By that time they will be too expensive! The dividents you get are not in dollars, but in the various coins that are traded in Kucoin. It is very likely that if you hold all your dividents, and do not sell them, that there are some gems in between. Consider if you get $10 worth of some new coin as dividents very early on. If that coin goes 1000x, like some coins will (just check coinmarketcap, almost every coin goes crazy at some point, even shitcoins), those $10 dividents will become $10k. Some coins might go 10x, 1x or even below the price when you got them. But as the overall marketcap of all cryptocurrencies increase, your extremely diversified portfolio on Kucoin will follow along. You will get more and more coins, and some of them will be worth more and more. Just factor risks of bear markets into the equation if you decide to hold everything. Kucoin will give Binance a run for their money. When Kucoin say they want to become a top 10 exchange by summer 2019, they are being conservative as to not give false hopes. I believe that they are an exchange on par, if not better than Binance, and that they can do what Binance did faster. Simply because Kucoin is currently growing atleast as agressive as Binance, and they are doing it in a market 7 times bigger than the one Binance launched in back in July. Binance has a volume of $3bn. I expect Kucoin’s volume to hit $1bn in maximally 3–6 months.

I set up this google sheet that calculates the dividents you will get for 10k KCS depending on the volume on Kucoin, have a look:

https://docs.google.com/spreadsheets/d/1S378fwJsWSwXq4yVXqwFYc4fN9d9ju9XG4FvDV3n0hA/edit?usp=sharing

If you found this analysis helpful, and are not yet registered on Kucoin yet (where you can also buy the KCS token), I‘d be very happy if you’d use my referral link below:

https://www.kucoin.com/#/?r=1QaRR

You must also use the referral code 1QaRR upon registration. Thank you!

Happy trading!