Kucoin is quickly becoming a highly popular exchange for digital assets. Kucoin originally came from China and one of his and was once one of mainland China‘s biggest exchange platforms competing with others like bit finance.
Following the crackdown and its legalization of asset exchange it in China, Kucoin relocated its operation to Hong Kong. Today we’re going to look into Kucoin and see how it stands up to other exchanges, what advantages it offers, and what potential downsides it has.
As with our previous Cryptopia Exchange review, we’re going to compare Kucoin to the same basic set of guidelines. Those guidelines include asset support, security, fees, and customer support.
According to coinmarketcap.com, Kucoin currently offers 179 trading pairs. While most exchanges only offer trading pairs between bitcoin and altcoins, and Ethereum and altcoins, Kucoin allows for trades between NEO, Bitcoin Cash, and Tether USDT tokens.
While not all options have the same number of trading pairs, there are a number of options to choose from. And even though the number of assets available for trade is not quite as vast as at Cryptopia, the asset choice should still be sufficient for most traders.
According to available information, it does not appear that Kucoin has been hacked or breached in any way.
The only issue that has been occurring recently and several customers are reporting great difficulties in making withdrawals of fear him, to which the site has responded on its official Twitter page. The issue only seems to be affecting some customers and not all.
Here is the official statement from Kucoin regarding the withdrawal issues:
We've detected the network congestion of ETH official website, it is more likely the occurrence of delay withdrawal of ETH from part of the users. Hence we'd recommend users to proceed withdrawal by transferring ETH to NEO. pic.twitter.com/Fij9AuPJB0
— KUCOIN (@kucoincom) January 17, 2018
It seems though, that not all customers are completely convinced.
Same. Coming up on 24 hours myself. And it's not an issue with the blockchain, b/c I had ETH transactions on both Binance and Yobit clear immediately before and after this one. Something is up with Kucoin.
— Seth Samuels (@sethuels) January 17, 2018
Tech issues aside, most important is that Kucoin does not seem to have been a victim of a hacking attack at any time. If they were hacked, then users did not lose assets as a consequence.
Kucoin offers surprisingly low fees. For most assets, the fees on trades are 0.1%. This is quite low for the industry where 0.15% or 0.18% is more common. Additionally, what’s quite interesting is that there are no withdrawal fees for assets like NEO. Users are also reporting that at times there will be no trading fees at all for various assets.
In addition to this generally lower fee structure, Kucoin seems to be pioneering unique business model in which investors can purchase Kucoin tokens which then entitles the holder to periodic dividends which consist of 50% of the fees collected by the Kucoin platform. Other exchanges have followed suit, such as Flyp.Me which offers its own token that grants a similar 50% dividend that it is giving out quarterly.
KUCoin Investment Layers – Source: KUcoin.com
What is slightly concerning is that Kucoin offers an affiliate program which allows for 20% of fees paid to someone who used an affiliate link to the originator of the link.
Then, if those who signed up with the link have additional users join, the original link sharer gets an additional piece of the fees, up to 3 degrees of separation.
While some have suspected that this is suspiciously pyramid shaped, it does not appear to be a scam. Instead, at least on the surface it appears to be a genuine profit-sharing, affiliate-style mechanism to spread popularity in the program.
As we mentioned in our Cryptopia review, customer support is often a sore point for users of cryptocurrency exchanges. Kucoin seems to be fighting against that notion, however, and is apparently quite famous for their fast 24-hour service and quick response times to customer support inquiries.
The company operates a well-attended Telegram chat where users can typically get responses in minutes instead of in days or weeks, if ever, as is the normal case for some other exchanges.
The People Behind It All
So who is running Kucoin? The exchange website lists Michael Gan, a former employee of Chinese conglomerate Ant Financial, as the CEO. For those who don’t know, Ant Financial is a spin off company of Alibaba, which is often referred to as the Amazon.com of China.
A common practice in many parts of Asia is to adopt an English name for ease of cross language communication. In the case of Michael Gan, his real name apears to be Ku Gan. The “Ku” in his name is likely an inspiration for the name of the exchange. Ku Gan, or Michael, is listed alongside 11 other chief staff members on the site.
While not perfect, Kucoin seems to have an active and supportive customer support team, comparitively low fees, and a reasonable amount of asset pairs. Traders interested in NEO will likely find the NEO specific advantages offered by Kucoin to be valuable.
For those traders who want to deal in thousands of assets, Cryptopia or another exchange with a broader asset selection might be a better choice.
Featured Image via KUcoin.com