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KuCoin Announces KCS Lockup, Burn & Cashback
Market Responds Favorably to Plans
KuCoin, a popular cryptocurrency exchange has announced developments with their native exchange token, KuCoin Shares (ticker: KCS). They have outlined a plan for KCS lockup, a cash back plan and future token burn. The main purpose of the future plan is to enrich the ecosystem of KCS, and of course increase the value of KCS.
A Bit About KuCoin Shares
KCS is a bit of a different native exchange token than Binance's BNB or Bitfinex's LEO. Unlike BNB or LEO, holding KCS does not grant the user with discounts on trading or deposits/withdrawals. KCS essentially rewards it holders with dividends of the exchange's profits in the form of cryptocurrency.
As per the announcement, users will be able to "lockup" their KCS throughout the month of august for a period of 90 days. Users that choose to lock up their KCS will receive up to 50% extra return in dividends.
One of the catches is, that there is a minimum amount of 200 KCS to lockup. With KCS currently trading at $1.41, that is just below $300. Another catch is users that would like to unlock their funds earlier will face a 10% penalty and will receive no dividends for that period.
In addition to the lockup, KuCoin announced that it will burn an amount of tokens equivalent to the amount that has been locked up.
The Market Responds!
So far, it looks like the market is responding positively to KuCoin's plan. KCS is currently up 7.84% in the past 24 hours, and news of a burn & lockup plan will likely keep up that momentum. We can possibly see KCS jump up a few spots on coinmarketcap, where it is currently #54. Ultimately August could be a very bullish month for KCS as long as Bitcoin doesn't lose steam.