KuCoin, The People’s Exchange, Finalizes Q1 2019 KCS Token Burn, The Sixth To Date
KuCoin Completes Q1 2019 KCS Token Burn, The Sixth To Date
On Tuesday, April 23rd, cryptocurrency exchange, KuCoin has updated its community of traders on their 6th quarterly (Q1 2019) KCS token burn. As per the exchange’s whitepaper, 10 percent of the generated profits will be used to buy back and burn KCS on a quarterly basis. For the first quarter of 2019, the team executed the burning of 280,501 KCS.
In addition to the token burning, KuCoin also shared that a user accidentally deposited 8,242 KCS into the KCS contract address. To ensure customer satisfaction holds, the team decided to pay the user in USDT so that they can repurchase the KCS amounts, as opposed to having lost all their tokens (which would have been the case, had it not been for KuCoin’s generosity).
The following is a recap of all of the KCS burns that have taken place thus far:
|Q4 2017||Q1 2018||Q2 2018||Q3 2018||Q4 2018||Q1 2019|
|Current KCS Total Supply||181,043,076||180,730,576||180,334,365||180,138,154||179,939,916||179,659,415|
|Current KCS Circulating Supply||91,043,076||90,334,365||90,138,154||89,939,916||89,659,415|
As seen in the table above, KuCoin did not burn tokens in Q4 of 2017. According to the team, this quarter was when a lot of funds were invested into “software and hardware,” in an attempt to ensure safety and efficiency were on par. This resulted in no profit, therefore, no tokens were burned.
Similarly, the second quarter of 2018 was rewarding for KuCoin and its traders as the firm burned another 300,000 plus tokens. To reward its traders, KuCoin supposedly announced July 12, that 50% of all transaction fees would be given to their holders, reported AMB Crypto.
Evidently, profits were slashed after the second quarter of 2018, but this is not to say that KuCoin did not burn too many tokens, as 196,211 and 198,238 are significant respectively. Based on the numbers, things have definitely picked up for KuCoin, as its most recent token burn amounted to roughly 280,000 KCS. Unfortunately, profits, for the time being, have not been disclosed.
Why Burn Tokens?
In general, by burning tokens what is being achieved is that the number in circulation will decrease. In doing so, the value of said crypto, in this case, the KuCoin [KCS] will go up. In some cases, a speciality loyalty program is believed to be created to encourage token holders to continue investing in said asset.
As for the overall burning process, KuCoin will continue until there are only 100,000,000 KCS left in supply.