KuCoin is the most recent cryptocurrency to hit the market and it has taken a lot of people by surprise. With a market cap of $214,875,000, KuCoin has put in more than 3x gains since January 1st of this year. The top five coins on KuCoin’s exchange are ICON ($2bn), XRP ($1.9bn), Ethereum ($172bn), NEO ($54.4bn) and Bitcoin Cash.
What’s interesting about this coin
It is that it is not an ERC-20 token (if you don’t know what an ERC-20 token is, let me explain). ERC-20 tokens are the ones developed on the Ethereum blockchain, and most cryptocurrencies that you can trade at this point are ERC-20 tokens. This means that they are a lot less likely to get hacked or scammed than most ICOs, but KuCoin comes with a different spin to it (KuCoin is an exchange). KuCoin is an international cryptocurrency exchange based in Hong Kong, which opened trading on September 15th, 2017. Because KuCoin is not fully decentralized like Binance and other exchanges, it has been criticized by several cryptocurrency enthusiasts. As of December 24th, 2017 the project has a market cap of $195,922,000 USD.
In the past,
It has been said by multiple parties that KuCoin does not have decentralized exchange technology. The author of this piece had to investigate for himself, and as shown on the graph below, KuCoin does in fact offer decentralized exchange functionality. You can see that on October 25th of 2017 (almost 2 months after its launch) the “Decentralized Exchange” tab appeared. The only form of bidirectional trading available was between NEO and ICON, with an option to buy or sell ICX to NEO.
Another point of concern is the project. Chose to use a Chinese share trading platform called Altex as its data system. However, as shown in the image below, the transaction speed is not as slow as one might assume. Altex also has an English version of their front page. Where people have been constantly communicating why they think KuCoin is a scam. Another thing that was proven by multiple parties. Was that KuCoin does in fact offer decentralization (see a screenshot from the blockchain explorer above). You can see that the command “get balance” returns real numbers for your accounts and their balances.
What is KuCoin?
We are an international cryptocurrency exchange based in Hong Kong. The first “decentralized” exchange offers a number of different coins to trade against, as well as fiat trading pairs with the USD and HKD. Our mission is to be the most user-friendly exchange platform in the industry. We will continue to find new ways to delight our customers and make KuCoin a must-have tool for traders, and we look forward to working with all communities and individuals in building this great future together. KuCoin also offers public nodes so that you can receive your token balances directly on the blockchain and receive network fees as soon as they are earned.
Why is it decentralized?
Decentralization is a core value for KuCoin. It means that customers can trade with confidence, knowing that their funds are safe. Since managing the fund balances is vital to our development and progress, we cannot compromise the security of our users’ assets. Decentralized systems also provide flexibility for the exchange as well as transparency. The exchange platform becomes less dependent on third parties as well, which is a key component to our success in long-term operations.
How does it work?
The platform uses smart contracts to store all user assets, and it automatically executes trade orders on behalf of customers. In the future, the decentralized exchange will account for the majority of orders. As a result, we want to prepare in advance to ensure that this new generation of exchanges is secure. Please note that since we use smart contracts, developers must program every function. If the particular business logic is not programmed correctly, it could lead to significant losses for our customers.
What are KuCoin Shares (KCS)?
KuCoin Shares is an exchange platform token issued by the KuCoin Cryptocurrency Exchange Platform. It’s based on the Ethereum blockchain and uses smart contract technology on the distributed network’s nodes for trading, clearing transactions and for paying dividends to KCS holders.