KuCoin, the cryptocurrency exchange, has issued a response to recent allegations from its community regarding discrepancies between its trading volume and the bonus issued to KCS holders.
The Singaporean company took to Twitter, outlining the reasons for the mismatches. The KuCoin Shares (KCS) community has accused the exchange of not giving them their fair share of the spoils, especially with the recent rapid growth of the platform.
KCS is the exchange’s native token. Holders of KCS are able to reap the rewards from the exchange’s success as 50% of its trading fee revenue is shared with them through the tokens.
The exchange revealed that there were two reasons for the discrepancies. The first is the increase in premium account holders. While this is a huge gain for the platform, it also means that KCS holders saw their earnings reduce. KuCoin offers lower trading fees to premium account holders “according to their contribution of high trading volume and large amount of KCS holding,” it explained.
The exchange has also recruited the services of professional market makers, it explained. Market makers provide liquidity to trading platforms by providing purchase and sale options for traders, keeping the market volatile. The market makers are aimed at KuMEX, the exchange’s derivatives trading platform. They’ll also provide liquidity for the spot margin trading platform which the exchange intends to launch soon.
The exchange also announced a buyback process that begins July 1, equal the “total amount of bonus issued within the week and burn the KCS collected in the buyback.”
Not everyone was agreed with the exchange’s new stipulations. Some of its users took to Twitter to vent, questioning the proportion by which their profits were dwindling as premium account holders increased.
“So, increasing in premium account holders actually losing more trading fees? Cause I am getting less daily bonus than when trade volumes was 5 times less. Doesn’t make any sense. Eventually I will get 0 when you have all premium accounts?”
KuCoin has continued to compete with the best exchanges, integrating cutting-edge features in the recent past. In April, it debuted its decentralized crypto storage service. Partnering with Arwen, a decentralized crypto storage platform, KuCoin offered its users the best of both worlds; liquidity that stems from centralized platforms and security that only decentralized platforms offer.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.