The price of the KuCoin (KCS) Token drops dramatically during Friday’s trading session in the United States.

The token drops to a period low of $19.34, its lowest point since the 28th of March this year. KCS has fallen by over 12% from its YTD peak, totaling over $1.4 billion in market capitalization.

KuCoin is currently the fourth-largest cryptocurrency exchange by volume, with a reported $1.2 billion in 24-hour trading volume.

The KuCoin Token (KCS) is the native token of KuCoin Exchange. Kucoin uses 80% of its overall profits to buy back and destroy KCS tokens.

Is KCS a good investment?

One of the most well-known firms in the cryptocurrency sector is KuCoin. The company operates a successful exchange that handles billions of dollars each day.

KuCoin also offers a lucrative affiliate program that allows people to earn money by referring others to the KuCoin platform.

The KuCoin Token has several advantages that make it an attractive investment. For one, KCS holders receive daily dividends in the form of KuCoin’s native token, Kucoin Shares (KCS).

KuCoin also burns KCS tokens regularly which reduces the total supply of KCS and theoretically should increase the value of each token.

KuCoin, like other cryptocurrency exchanges, has introduced its token called KCS to encourage users to utilize the platform. When they use it to trade, holders of the coin usually get a discount.

In recent weeks, the KuCoin price has stood up better than other cryptos. This is due to the funds raised by the firm last week, which explains most of this success.

The firm was valued at $10 billion and was acquired by a group of investors. Including Jump Trading, Circle Ventures, and Matrix Partners for $150 million.

The new investment round was surprising because it came as a surprise.

For starters, many venture capital firms are having difficulties since their assets have dropped in value. Tiger Global and Softbank, for example, have lost over $50 billion this year alone. 

The round was also surprising since, as seen in Coinbase’s most recent results, the crypto business is experiencing difficulty. The company lost more than $400 million in the first quarter.

Worse, its market capitalization has fallen to roughly $14 billion as a publicly listed firm. It was valued at more than $75 billion at one point.

Still, KuCoin managed to raise money from some of the top firms in the industry. This includes Singaporean sovereign wealth fund GIC, US-based cryptocurrency hedge fund Paradigm, and IDG Capital. Which is one of the largest venture firms in China.

The funds will be utilized to develop the firm’s operations across other markets, such as Web3.

The company will expand its business into distributed exchanges, games, and other items. It will also be used to list more assets on KuCoin and to attract more users.

KuCoin token price forecast

Data Source: Tradingview

We can also notice that KCS’ price is separated from other cryptos’ prices on the four-hour chart.

The coin forms a cup and handle pattern, which is represented in black on the four-hour chart. It has retreated and gone sharply below the pattern’s upper region.

The support line has also been pushed lower, and it is now close to the 25-day and 50-day moving averages. The Relative Strength Index has dropped below the oversold level as a result of this drop.

As a result, sellers will most likely continue to pile on the pressure, targeting $18 as their next objective. 

The above analysis is only saying that KCS is a good investment. Do you think differently? Hit the comment section and share with us.

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James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.