I've known of Kucoin exchange for a while but didn't really take much notice of it until last week. That's when I heard of their trading fee sharing scheme. It's called the "Kucoin Bonus". So I bought some Kucoins to test how it works.
Quick Background
Kucoin has their own token "Kucoin Shares (KCS)". Kucoin shares 50% of the trading fee they collect with KCS holders daily, and if you hold KCS you get an amount proportionate to the number of KCS you own. Since they charge trading fee in the token traded, you will amass bits of different coins over time. For specifics, refer to Kucoin's youtube video (linked below).
Calculation
I had bought ~300 KCS over Christmas and this is a snapshot of the Kucoin Bonus page on 30 Dec. Note: KCS has gone up 3x since I bought them but I will be using prices as of 30 Dec.
So with 364 KCS worth about 1280 USD, the daily bonus is coins worth 0.18 USD. That's about 0.014% per day, or 5.13% p.a. This is imo not a bad return, given that this is on top of the potential price increases of KCS and the other coins.
The downside is that since the "dividends" are given in a variety of coins rather than in KCS, it may be difficult to impossible to cash them out, unless you own quite a lot of KCS.
Side note: For NEO, Kucoin helps you claim GAS so that will indirectly increase the returns too
Another side note: KCS holders also get to participate in giveaways that Kucoin conducts time to time (an example below). So that indirectly adds to your returns
Caveats
Of course, the bonus depends on the trading volume. On 30 Dec the 24h volume was in the range of 60M USD. When I first bought it on Christmas it was 17M USD. As Kucoin lists more coins and as more folks know of this exchange it is safe to assume volume will go up. Just for reference, Binance, another HK based exchange that started around the same time as Kucoin, has a daily 3B USD volume.
This is also assuming the Kucoin Bonus stays unchanged. Kucoin may change the % of trading fee given back, or require a min quantity (currently there is none enforced, except that if the quantity is too low you may not get certain low-traded coins)
References
Hey there, if this post has helped you, please consider using/sharing my Kucoin referral!
https://www.kucoin.com/#/?r=1M5Ps
Thanks for the heads-up on Kucoin dividends. I had heard they gave away tokens some how for rewards but I didn't know the details.
I only have 45 Kucoins that I bought 2 weeks ago but it looks like they have given me about .75 cents worth of all kinds of tokens in those 2 short weeks.
Yes I do see a problem with trying to sell only a few pennies worth of a crypto down the road, but some may turn out to be big winners, who knows.
I guess I will take the free coins, its better than a sharp stick in the eye like you get for a bank dividend.
They were a real good deal yesterday, like 3.65 usd. I wish i could have bought more!
I picked up 18 more Kucoin and a bunch of Dragonchain.
The kucoin was already back to 4.50 at the time but still a steel.
Just wondering if you could explain a bit more about Kucoin helping us get gas from NEO.
I have some NEO on another exchange, maybe I should move it to Kucoin.
And hey everbody enjoying liquidsteels post, dont forget to upvote each other. It goes a long way over time.
I just up voted everybody who contributed to this post.
It is a very intresting topic.
Great article,
I wish i had found out this way earlier. I started with 6 KCS a few weeks ago and then 26.
One thing that is very interesting about KCS is also that the volume on the trade pair is quite low, so there are also some interesting trades to do.
The other day was watching the GAS (neo) / KCS price and it was jumping back and forth from 65usd to 69usd. i noticed that there was very little volume and this was causing the price to bounce quite consistently.
So i did 3 trades back and forth watching it jump, and after those 3 trades i have 29.88 KCS, it only took about 30 minutes.
There are also some decent differences in prices between the trading pairs and it is sometimes more interesting to use KCS.
In the dip yesterday i picked up another 55, and if it dips again i think i will buy more.
Though I am worried about the percentage of the profits they will share decreasing. Right now it is at 50%, and people are speculating it will drop to 15% in April.
With the amount of coins they are adding weekly, i am hoping that when the bull market returns, the trade volume is going to explode!
And hopefully this will counteract the drop in profit sharing.
Just my .02, not financial advise.....let me know your thoughts!
Wow that's good to know. I wish I would've know about this when KCS was down. Seems like a good way to get everyone to invest in the coin. I've done a little trading on KuCoin not bad and easy to navigate overall it's a pretty good exchange.
Thank You.