Passive income from holding the Kucoin/KCS token explained

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dabp

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Hi people,

WARNING: Long read - worth it if you are interested in Cryptocurrencies.

Sentimental me
I was once a part of this community on a daily basis, trying to get myself going again after a massively failed business adventure. I started with instagram, massplanner and OGads and made a few dollars. I spent those dollars on starting a Shopify store that turned into multiple stores, that made me thousands of dollars.

I spent a lot of that money paying off debts and getting my life back on track, so thank you for that blackhatworld.

Now to what you came here for:

I have spent the past 2 months playing with cryptocurrencies and I have made a nice chunk of money doing so.
Last week I was alerted to a new exchange called Kucoin. They are new in the sense that they only started back in September 2017, but have grown like mad since. They are now in the top 20 exchanges on volume and flying to the top 10 shortly.

KCS is their token/coin and what a token it is.

When trading on Kucoin you pay a 0.1% fee on every trade. So does your counterpart that's doing the selling/buying. So every trade is "taxed" 0.2% fee that goes to the exchange. Nothing weird about that.

Here is where the fun part starts.
Holding KCS in your account reduces your trading fee. Holding 1.000KCS reduces your fee by 1%. It does this all the way to 30.000KCS, which would give you a 30% fee reduction(from 0.1% to 0.07%).

The fun continues.
Remember those 0.2% fees from every transaction? To incentivize new customers, they are giving back 90%(!!!) of those fees to the customers - yes, 90% was not a typo.

50% is given as daily dividends to customers holding the KCS token in the exchange and 40% is giving to those that get new customers to the exchange via referrals.

What does that mean?
It means that each day at 12, daily dividends are calculated and a few hours later paid out to the customers holding KCS tokens on the exchange.

What are the numbers?
Say you have 10.000 KCS tokens(time of writing worth $75.000)
That would, with todays volume earn you $16.77. This is paid out via giving you "free" coins to almost all the listed coins on the exchange*
Check out this website for a list of coins and amount received with x KCS in your account: https://kucoinshares.com/

WHAT?!?! $16.77 a day are you nuts, that's not worth my time!!!!

Wait, there is more ;)

Current daily volume is $165.000.000 (3rd of January 2018)
This volume is MASSIVELY rising, due to Kucoin listing many new coins, have low fees and the KCS dividends token system.
This exchange will go to Binance level volume in a very short time and when it does, those $16.50 could be $500. Daily. Or $182.500 yearly. And that is excluding all the possible profits from the daily payouts having risen in price over time.

Lastly, this is also excluding the token price itself, which have gone up 300% in 2 days!
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Imagine the price over time if this continues. The Binance token BNB just reached $9 and they started over 6 months ago. The KCS token hit $8.33 in 3 months(and did +1900% in the last 3 weeks).
You can trade this token like anything else(vs BTC/ETH/USDT), so if you decide to cash out on your initial investment, because the KCS token has doubled, trippled or 10x'ed in price over time, meaning your initial $75.000 is now $750.000, you can totally do that, but as I see it, the real value is in the daily dividends, because that is true passive income.

"165mil volume" "Binance levels" what are you talking about?
Volume is the daily trades. The 0.2% fee I mentioned earlier is based on this number.
Current volume is 165 million, which means that assets totaling 165 million US dollars changed hands within 24 hours and Kucoin have taken $330.000 in fees and given $297.000 back to the customers!

On the 22nd of December the daily volume was 20 million. In 10 days, they have gone 8.25x on their daily volume. That's a 825% increase in 11 days.
This means that the growth is exponential and their efforts to market themselves have been a MASSIVE success so far.

*Got your attention?
Remember those coins you started getting daily when you first bought your KCS tokens, when the dividends were only a measly $16.77? Well, those "free" coins are overall also making you profits. Overall the coins on the exchange are all high quality coins that have been handpicked by the team behind Kucoin, that are overall going up daily. So those daily $16.77 you made in the beginning, but never touched have probably gone up 1.5-5x 3 months from now. And so have all your other payouts that keep coming daily. So unless you trade with your dividends(which you can if you want to, to compound more earnings - more on that later), those dividends should also have gone up in value without you doing anything.
Massive passive income.
8/10 of the last coins added 3-5 weeks ago have gone 300-1000% up. Those are the same coins that you are getting daily by having KCS in your account.

User growth
Kucoin have seen a huge run of new customers. So much so, that their login actually went offline for a few hours today!(That's not great advertisement? - Well, it's a testament to what 5x your normal daily traffic does and they fixed it pretty fast. They have done 3 server upgrades in the last 2 days alone! They are working around the clock in there).
Numbers:
October 19th: 50.000 users on the site.
December 19th: 200.000 users.
January 3rd: 230.000 users.

What about the last 40% given to referrals?
If you refer a new customer to Kucoin, you get 20% of their trading fees, flat rate. If the person you invite, invites another person, you get 12% of their fees as well. If they invite someone, you get 8% of their fees.

Coin burn
There has been 2.000.000 KCS tokens issued. Every quarter, they will buy back tokens to burn(destroy) until only 1.000.000 remain. This will effectively double the price of the KCS token itself and double your daily dividends.

Lowered dividens over time
There was chatter about gradually lowered dividends starting April 2018, but I haven't seen any official news from Kucoin regarding this.

Do I need to have 10.000KCS for this to work?
No, the payout rate is linear, so if you hold 1.000 you get $1.655 right now, but in the near future you are getting $20-$50-$100 a day depending on the daily volume.
And you can always trade the daily payout you receive in other coins back to BTC/ETH/USDT and then buy more KCS tokens and compound your daily earnings that way, increasing the total amount of KCS you hold.

Check this google spreadsheet for approximate earnings holding KCS token:
https://docs.google.com/spreadsheets/d/1S378fwJsWSwXq4yVXqwFYc4fN9d9ju9XG4FvDV3n0hA/edit#gid=0

Video from Kucoin explaining the bonus system:


Video from Kucoin explaining the referral system:


Position/swing/daytrading your earnings?
I have spent a lot of time doing a single method for growing my initial $1.000 to the nearly $30.000 I hold today.

He gives the very best of advices for trading and growing your account steadily every day, and by personal experience, I can tell you that his method works. Using your daily earnings from Kucoin is perfect for this, because you get all sorts of interesting coins that you can trade and move around to make more. Or you can just trade your earnings back to KCS tokens or leave them alone, chances are, they will make you money every day no matter what.
Note: He uses Coinigy.com as a trading platform and for his alerts. Kucoin isn't listed on there yet, but they should be shortly.
https://www.coinigy.com

https://www.kucoin.com/

Best of luck, let me know if you have any questions :)

Have fun trading and happy hunting.
 
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usong725

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i have invested in KCS 2 months ago from my RPX earnings. Got some KCS @ 0.83cents/coin and now earning few $ daily from the past few days.

price per coin at the moment is $7.5. So my investment has multiplied by 9 :D
 

vaibhav123

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I want to invest 5 dollars how much it will pay me back ?
 

H3fog

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Bro i bought $10k worth of thsi coin at 50 cents when it first came out. I don't think nobody expected kucoin to go up this high.
 

afd2000

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Hi dapb, I hold 20 Kucoin Shares (gonna buy buy more so I have 30:) and yes I'm getting other coins for free but there is a catch - I cannot sell them because I'm getting really low amount of them so basically I dont have any passive income :)
Or am I missing something? Thanks anyway for this post!
 

usong725

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^increase the amount of KCS coins you hold so you will receive more shares. Some altcoins are cheap at the moment so you will get whole coin instead of fraction of it

or just hold your KCS and hope price will increase by ten folds ;) then sell it :D
 

afd2000

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Hi dapb, I hold 20 Kucoin Shares (gonna buy buy more so I have 30:) and yes I'm getting other coins for free but there is a catch - I cannot sell them because I'm getting really low amount of them so basically I dont have any passive income :)
Or am I missing something? Thanks anyway for this post!
UPDATE: I found the catch you have to hold 10k KCS(not only 10 KCS) to earn 16 dollars:) Well I guess I'm too late again :)))
 

dabp

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I want to invest 5 dollars how much it will pay me back ?

I think 5$ is a little low. You might want to rethink that strategy. I think your absolute minimum for starting to invest in crypto currencies should be a few hundred dollars.

UPDATE: I found the catch you have to hold 10k KCS(not only 10 KCS) to earn 16 dollars:) Well I guess I'm too late again :)))

Yes, today you need 10k, but in the future it is not so. As the daily volume increases, so does your dividend. If the daily dividend increases by another 800% in 10-20 days, then your daily intake from having 10k is $100+. If you "only" have 1.000KCS, then you are right, you are "only" earning $1.677 per day now, but that might go to $10+ in a few weeks and so on.
 

usong725

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Nope. Ended up selling at $1 because i didn't think it could go up any more haha.

ouch. Got my coins at $0.83. Still holding at $7.33. I might sell at $10 then rebuy when it dip. hehe
 

H3fog

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ouch. Got my coins at $0.83. Still holding at $7.33. I might sell at $10 then rebuy when it dip. hehe

Kucoin will be a top 10 exchange for sure in 2018 so price for kucoin shares should end up being good. Nice choice.
 
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