Crypto Exchange KuCoin Responds To Irregularities In Trading Volume, Shares New Buyback Plan
Kucoin, the Singapore based cryptocurrency exchange platform recently received some backlash due to some irregularities in their trading volume, which led to a bonus given to Kucoin Shares (KCS) holders.
A statement was released by Kucoin in which the major reasons for these discrepancies were outlined.
“The average trading fee rate per account dropped as we have seen an increase in premium account holders that are offered lower trading fee rate according to their contribution of high trading volume and large amount of KCS holdings”
Per the statement, premium Kucoin account holders may have lost way more in transaction fees than other account holders.
Professional Market Makers
Kucoin further added that professional market makers were hired to provide sufficient liquidity in its derivative trading platform as well as its Spot margin trading platform, which is to be launched soon.
However, Kucoin users were not satisfied with its response. A Kucoin user, @GreatSoloQueue, on Twitter said:
“If you wanted actual liquidity you would have market makers sit on both sides of the order book not wash trade.”
Kucoin Buyback Plan
As Kucoin responded to the irregularities they also announced that from the 1st of July 2019, a buyback will be carried out weekly which will be equal to the total amount of Kucoin bonuses issued within each week and burn the Kucoin Shares (KCS) collected.
KCS New Mechanism
This will continue until Kucoin launches its new mechanism for Kucoin Shares (KCS) in Q3. The shareholders will be able to receive the bonuses on the amount of Kucoin Shares (KCS) in their accounts.