The crypto exchange Kucoin and the associated Kucoin token (KCS) are currently causing a stir in the crypto scene. But what is actually behind the platform and where can you buy KCS?
With a market capitalization of around one billion US dollars, the Kucoin token is currently in the top 100 of the most important cryptocurrencies. In the past few days, the coin on the Kucoin crypto exchange has doubled in value. The KCS rate climbed from a good seven dollars to over 14 dollars – most recently, however, it fell to below twelve dollars. The Kucoin token had already reached its previous all-time high of over 20 dollars at the beginning of 2018.
In April 2021, the token scratched the $ 20 mark again before the price plummeted to below $ 5 in the general downward pull of the crypto market in recent weeks. Not only because of the price jump of the past few days, Kucoin is currently on everyone’s lips again. Observers see the project, which offers a Kucoin blockchain in addition to the exchange and tokens, a possible successor for Binance, which is currently with regulatory difficulties fights. But let’s first see what exactly Kucoin is.
The crypto exchange Kucoin was launched in September 2017 and, according to its own information, now has eight million registered users from over 200 countries worldwide. On Coinmarketcap that means fifth place on the stock exchanges. 350 projects and 800 trading pairs are supported on the platform and the blockchain. Projects like ICP and DAO had their first listing on Kucoin. Bitcoin, Ethereum, NEO, EOS and USDT, among others, can be traded. Forbes Advisor magazine named Kucoin one of the best crypto exchanges in 2021.
Kucoin is headquartered in Singapore. Kucoin founder and ex-CEO Michael Gan is said to have started programming at the age of eight and founded his first startup at the age of 16. Gan worked, among other things, in the AI department of the Alibaba financial subsidiary Ant Financial. Gan is now also Chairman of Kugroup. In addition to the crypto exchange and the ecosystem around KCS and Kuchain, there is also a cloud provider under the umbrella of this company. Gans partner and Kucoin COO Eric Don is considered a star in the Internet industry in Southeast Asia. One of the founders of Kucoin is Johnny Lyu, who is currently the CEO.
It is, however much in the darkregarding the exact company structure and financial background. However, Kucoin is said to have started as a company based in the Seychelles and headquartered in Hong Kong. Around the three founders there were lawsuits in US courts in 2020 because of possible financial losses and allegedly misleading information about those responsible.
In mid-June, Kucoin announced the official mainnet launch of the so-called Kucoin Community Chain (KCC). This is an Ethereum-based blockchain. Kucoin promises low latency and low transaction costs with high stability and security at the same time.
The so-called public chain is based on the proof-of-staked authority as a consensus mechanism. A block should be confirmed within three seconds. In order to keep transaction costs low, only the Kucoin token should be used on the blockchain. The KCC blockchain is compatible with smart contracts from Ethereum and ERC-20, which should enable the Defi and NFT projects.
The popular crypto wallet Metamask has been supporting the integration of the KCC blockchain for a few days. Metamask is available for the Chrome and Firefox browsers and as an app for iOS and Android. In order to integrate KCC into Metamask, the wallet is downloaded and / or installed.
The Ethereum network is preset. If you want to replace it with the Kucoin community chain, you can do so via Kuswap. To do this, simply go to the kuswap.finance page and press the Connect button there. Also one manual Installation is possible. To do this, simply press the network drop-down menu and select Custom RPC. Enter the following information in the free fields.
Chain Name: KCC-MAINNET
Chain ID: 321
RPC URL: https://rpc-mainnet.kcc.network
Explorer URL: https://explorer.kcc.io/en
KCS (Kucoin Shares) is the token of the Kucoin crypto exchange, comparable to the Binance Coin (BNB) of the significantly larger competitor. The token was launched as an ERC-20 token on the Ethereum network and is supported by most ETH wallets.
At the start, 200 million tokens were issued. Through a buyback program, it should only be 100 million at some point. According to Coinmarketcap, around 170 million tokens are currently available. You can currently buy the KCS token on the Kucoin, MEXC, Probit Global and Ascendex (Bitmax) exchanges.
As with many other cryptocurrencies, the price of the Kucoin token is extremely volatile. A forecast of the development of the KCS price is correspondingly difficult, especially since the market is heavily dependent on how the largest crypto currency Bitcoin develops. Possible regulatory restrictions, political backgrounds or the support of important players can cause prices to rise and fall sharply at any time.
On a technical basis, however, many analysts see an important resistance at the price of $ 15. If this mark is broken permanently, the KCS rate should move back towards the $ 20 mark. The planned expansions of the project in the direction of a completely decentralized platform as well as the reduction of the tokens freely available on the market via buyback and “burning” from the beginning of 200 to only 100 million should have a positive effect.
Analysts see risks in a possible overvaluation and low trading volume.
In September 2020, Kucoin was the victim of a hacker attack. Unknown perpetrators were able to gain access to the hot wallet of the crypto exchange and steal crypto currencies in the millions. At first it was said that it must have been at least $ 150 million. Kucoin CEO Johnny Lyu later stated that the perpetrators had been tracked down and that cryptocurrencies worth at least $ 200 million had been seized.
In general, it can be said that Kucoin has at least slight scratches in terms of seriousness. Questions remain unanswered about the headquarters and the founders. As for the experience with Kucoin, there are definitely negative voices on online review platforms. Among other things, it concerns the loss of cryptocurrencies and the lack of support.
However, there are similar complaints with many crypto exchanges. The experiences and ratings of the other large crypto exchanges are on a similar (low level). As always, be careful when investing in cryptocurrencies. It is best to invest only as much in KCS and Co as you can get over in an emergency.
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