The Hong Kong-based cryptocurrency exchange Kucoin, with the native token Kucoin KCS, soared in value in the first week of April.
The event follows after their accomplishment on its first time quarterly KCS token burn. Which in relation demonstrates a good profit for Kucoin in the first quarter of 2018.
KCS Success In The First Quarter
With Kucoin’s announcement last Sunday, April 8, they have verified and confirmed completing their opening KCS burn event. The Kucoin team released a whitepaper which specifies what initiated the buyback and burn event. The whitepaper states that as Kucoin sees a profitable quarter, it is required of them to allocate 10 percent of its profits into buying KCS tokens. They purchase it from the open market, then subsequently burning them right after.
Kucoin bought and burned a total of 312,499.5 KCS tokens as indicative of a rewarding quarter. As per the given requirements laid out in their whitepaper, it is quite right to assume that the cryptocurrency exchange had documented a quarterly profit of over 3.1 million KCS. By which it means $7 million in fiat if the estimated value of KCS is around $2.25 at the time.
In their announcement last Sunday, the team points out their success as a direct result of their efforts of purposefully spending high for both software and hardware resources. Their goal on the upgrade was to improve the safety and efficiency in trading for their users.
It is a welcome development, of course, following after Kucoin’s failure to gather profit in the last inaugural quarter launched last September during the fourth quarter of the year 2017. They said that they did not make a profit in that quarter as a result of investing a large number of funds into the resources mentioned above.
The Purpose Of A Burnt Event
The Kucoin cryptocurrency exchange platform maintains a 200 million issuance volume. The buyback aims to make it in a constant of 100 million.
The burn event entails buying Kucoin shares with the sole intention of destroying or burning them. Consequently, a buyback and burn can bring about a decrease in the total supply of a specific cryptocurrency.
Existing KCS holders receive a reward as the virtual tokens they own, are instantly increased in value. The token burns increase the economic scarcity of the tokens left behind, therefore making them more valuable.
The scarcity of KCS coin means a lot to its holders. The burn event allows investors to earn more money in the process. KCS holders can expect to see their daily payouts to go higher in volume as the circulating supply of KCS becomes lesser in time.
Current Kucoin Shares Price
If you go in-depth with the latest crypto data, KCS KuCoin Shares (KCS) was seen to have a current market capitalization of 211,065,163.00. They have also recorded trading near the price of $2.32.
Base on the historical price data, the KCS KuCoin Shares (KCS) has moved -0.55% on April 8, and moved 1.03% over the previous seven days.
Following the circulating supply, the current number value is at 91,043,076, while their volume is at 5,187,060.
KuCoin Shares (KCS) is up at 12 percent on April 9. It has also been able to improve their standing to currently being the 59th most valued cryptocurrency and, 31st in volume rank.
The popularity of cryptocurrency has generated widespread interest in the public. It shows that the demand is not slowing down any time soon.
The end of the first quarter has garnered a positive development and an impressive profit for Kucoin. In light of this buyback and burn event, people can expect more from Kucoin KCS in the coming months.