Crypto Analysis: Can Kucoin Shares Do 10x?
Some years ago, I read a book titled 'The 7 Pages Plan On How to Become Crypto Millionaire Before Year-End.' Who doesn't like to become a millionaire? The title is so fascinating and hard to resist. A 7 pages book that will help me become a millionaire? That's pretty easy to read. The book is free, so why not read it.
I downloaded a copy and I read it all in 30 minutes. It contains bit-size information on how money is made in crypto, yet powerful content.
The author talked about various ways to earn crypto in the book, out of the 7 plans, buying KCS and holding for a long term is the 5th plan in this book. The author emphasized the fact that having a deflationary KCS is similar to having a share in Kucoin. Well, how true is this? You will find out in the crypto market analysis, I will zoom in on KCS and at the end of this article, everything about Kucoin KCS will make sense to you.
Overview of Kucoin Exchange and Its Ecosystem
Founded in 2017, and popularly called the People's Exchange, it rose through the ranks of other cryptocurrency trading exchanges to become one of the top 10 in the world in less than 5 years. Surpassing Poloniex, Bitstamp, Huobi Global, Gate, and Bitfinex in global rank in terms of daily volume, liquidity, market, website visits, number of listed coins, and fiat supported.
To put in perspective, Kucoin is not only a people's exchange, it is the people's choice!
With the increasing amount of new financial products that helps more people to hasten their adoption of crypto, the exchange has the potential to topple Binance in terms of Volume and become the crypto trading platform with the biggest volume in the world. If this should happen, what is going to be the impact on KCS? I am going to talk about it, but let me share my favorite crypto products within Kucoin Ecosystem.
- Kucoin Lend
- Kucoin Trading Bot
- Kucoin Cloud Mining and
- Kucoin Affiliate Program
All the above products give users the opportunity to earn money on Kucoin without stress. If you like to earn passive income, explore these products.
Factors That Will Influence KCS Price
- Trading Volume
- Venture Capital Investment
- Burning and
- Growing Ecosystem
Impact of Kucoin Volume on KCS?
According to data extracted from coinmarketcap website, Kucoin is having a daily trading volume of $1.2bn, and the platform charges 0.1% for the maker and 0.1% for taker fees, this is 0.2% for every buy and sell.
Volume = buy + sell.
Although some traders enjoys up to a 50% discount on trading fees because they are holding a reasonable amount of KCS on the Kucoin exchange. Now, let's imagine a worse scenario Kucoin earns only 0.06% after paying commission to affiliates. it means that for every $1.2bn volume, Kucoin earns $720k as trading fees, this is a highly conservative estimate. Also, Kucoin makes money from deposit fees and listing fees.
If Kucoin is making a $40m profit per month, 10% is used to buy back KCS and burn it on the blockchain until 50% of KCS supply is burned! This happens every quarter of the year, and the reports are published.
The impact of this is a lower supply that cushions negative price action in a bear market and skyrockets the price in a bull market.
Venture Capital Investment
Recently, KuCoin closed a $150 million Pre-B Funding Round with a valuation reaching $10 billion. This is massive! It helps in providing capital for market expansion into Defi, GameFi, and NFT. Success in the Web 3.0 niches will increase demand for KCS because it is the native currency that will power all these Web 3.0 products on the Kucoin Community Chain.
Remember, lower supply and higher demand are recipes for massive KCS pumps.
What About KCS Burning?
Well, I didn't forget this, it is why I call KCS a deflationary cryptocurrency. Why? Because it keeps resisting inflation since it was created.
Having a look at the above image, you'd realize that the maximum supply of KCS is 170,118,638, and this is the amount that will ever exist till the end of time. Its total supply is now 145,879,861.
Burned KCS= Maximum Supply - Total Supply = 24,238,777
Over 24 million KCS has been burned in the last 4 years, and more are going to be burned leaving the total supply at 85,059,319 according to information in the whitepaper that says KCS will be burned until 50% of the maximum supply do no longer exist.
Well, the future is bright.
Growing Ecosystem
How big an ecosystem is will have a significant price impact on the native coin/token. A look at the Solana ecosystem shows that the entire blockchain enjoys a huge market cap and volume in a bearish market. Despite the network issues on the Solana blockchain, the growing ecosystem has been helping investors to reduce the impact of the market downtrend and clogged network on the price of SOL.
As Kucoin continues to grow its ecosystem, more crypto products will be deployed on KCC (Kucoin Community Chain) and this will have a direct positive effect on the price of KCS.
My Conclusion
When you consider all the factors that were listed above, it is easy to conclude that the KCS value will increase by 1200% before 2025. Solana is having a market capitalization of $12bn right now without a buy-back program and coin burning. As supply continues to reduce, amidst increasing demand for KCS in the KCC ecosystem, my price prediction for KCS is $127 by 2025.
PS: If you would like to invest in KCS, kindly sign up on Kucoin Exchange with my referral link.
My referral code is 139077080
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