In recent years, the cryptocurrency market has seen a number of new tokens and coins that have arisen from the ashes of Bitcoin. The most prominent among these is Binance Coin (BNB) which was launched in July 2017.
In this article, we will take a look at how it compares to another popular coin: KuCoin Token (KCS). We will also compare their use cases and benefits as well as discuss their potential for growth in 2019 and beyond.
Binance Coin (BNB)
Binance Coin (BNB) is a cryptocurrency that is used as a utility token on the Binance exchange. It can be used to pay for trading fees, withdrawal fees, and listing fees on the Binance exchange. One of the primary use cases of BNB is for trading pairs on the Binance platform. A common trading pair on Binance is BNB/BTC, which means BNB can be traded against Bitcoin (BTC) along with BNB USDT and more.
Binance Coin has been around since 2017 and it’s one of the most popular cryptocurrencies in terms of market cap and volume traded daily.
KuCoin Token (KCS)
KuCoin is a cryptocurrency exchange based in Hong Kong. It was launched in 2017 by Michael Gan, who also founded the company behind Binance. The exchange has quickly grown to become one of the top 10 exchanges by volume, and it’s known for its low fees and wide selection of trading pairs.
KCS is the platform’s native token, which can be used to reduce your trading fees or receive discounts on other services offered on KuCoin’s platform.
Comparison Between BNB and KCS Tokens
Both BNB and KCS are cryptocurrency tokens. However, they differ from each other in several ways:
Use Cases
BNB and KCS are both native tokens of popular cryptocurrency exchanges, Binance and KuCoin, respectively. Both tokens are used primarily for trading fee reductions on their respective cryptocurrency exchanges. However, there are some key differences in their use cases.
BNB
Binance Coin (BNB) is the native token of the Binance cryptocurrency exchange. Binance is one of the largest cryptocurrency exchanges globally, offering a wide range of cryptocurrency trading pairs, including fiat-to-crypto. Here are some use cases of BNB:
Trading fee discounts: BNB can be used to pay for trading fees on the Binance exchange, with a discount of up to 25% offered to traders that use BNB.
Secure asset: Holding BNB in your wallet caters for emergency withdrawal fee payments if an urgent need arises.
E-commerce payments: Binance has a growing merchant network that accepts BNB as payment for goods and services.
IEO participation: Recently, some Initial Exchange Offerings (IEOs) on the Binance Launchpad required users to hold BNB to participate in token sales.
Staking: Binance offers staking of certain cryptocurrencies, and BNB can be used for staking to receive rewards.
KCS
KuCoin Shares (KCS) is the native token of the KuCoin cryptocurrency exchange. KuCoin is known for its high-volume trading with a globally diverse set of cryptocurrencies. Here are some use cases of KCS:
Trading fee discount: KCS holders enjoy a 20% discount on their trading fees.
Bonus and incentive program: KuCoin shares up to 90% of its trading fee with token holders. KCS holders also enjoy exclusive bonuses and incentives in various trading pairs.
Interest-free loan: KCS can be used to buy cryptocurrency to allow a user to trade on margin, facilitating the purchase of cryptocurrencies without paying interest on loans.
Staking: KCS can be staked to earn rewards in selected cryptocurrencies supported by KuCoin.
KCS market-making: KCS can be used to place market-making orders thus receiving trading fees from orders placed.
Security
Binance Coin (BNB) is a utility token that can be used to pay for trading fees on Binance, as well as for discounts on other services offered by the exchange. However, it’s important to note that the BNB token has no intrinsic value outside of its role as a payment method on Binance.
KCS is a security token issued by KuCoin Exchange and backed by their own profits from transaction fees charged by their platform. Unlike BNB, KCS has actual value beyond its use case within KuCoin’s ecosystem; in fact, if you hold KCS in your wallet then this means that you are entitled to receive dividends from these profits–a concept known as staking or proof-of-stake (PoS).
Benefits and Drawbacks
Binance Coin (BNB) and KuCoin Token (KCS) are both utility tokens associated with their respective cryptocurrency exchanges. Here are the benefits and drawbacks of each token:
Binance Coin (BNB):
Benefits:
- Utility: BNB can be used to pay for various services on the Binance platform, including trading fees, listing fees, and more. Using BNB for fees offers a discount, which can be advantageous for frequent traders.
- Token Burn: Binance regularly uses a portion of its profits to buy back and burn BNB tokens, reducing the total supply. This can potentially increase the value of remaining tokens.
- Binance Ecosystem: BNB has utility beyond the Binance exchange, with use cases expanding to various decentralized applications and partnerships within the Binance ecosystem.
Drawbacks:
- Dependency on Binance: The value and demand for BNB are closely tied to the success and reputation of the Binance exchange. Any negative news or regulatory issues related to Binance can potentially impact the value of BNB.
- Centralized Exchange: Binance is a centralized exchange, which means users are relying on a centralized entity for their trading activities. This can carry risks, including the potential for hacking or regulatory actions.
KuCoin Token (KCS):
Benefits:
- Trading Benefits: Holding KCS provides various trading benefits on the KuCoin platform, including fee discounts and higher referral commissions.
- Revenue Sharing: KCS holders receive a portion of the trading fees generated on KuCoin as a form of revenue sharing. This can provide a passive income stream for token holders.
- KuCoin Ecosystem: KCS has utility within the KuCoin ecosystem, enabling participation in token sales, accessing exclusive services, and more.
Drawbacks:
- Dependency on KuCoin: Similar to BNB, the value and demand for KCS are tied to the success and reputation of the KuCoin exchange. Any negative developments or issues with KuCoin can potentially impact the value of KCS.
- Centralized Exchange: KuCoin is also a centralized exchange, meaning users are relying on a centralized entity for their trading activities. As with any centralized exchange, there are associated risks.
Which Coin Will Attract More Investors in the Long Term?
While both coins have their advantages and disadvantages, Binance Coin (BNB) is the more secure option.
The main advantage of KCS is that it can be used to pay for trading fees in some cases. However, this feature is not available on every exchange that offers KuCoin Shares; it’s only available on the KuCoin platform itself and its related platforms like HADAX (an ICO listing platform).
In addition to this benefit, BNB also has many others including: lower transaction fees; instant withdrawals from your wallet via an API call or Telegram bot; and a relatively high stable supply due to its finite max supply of 100 million coins which cannot be mined by miners but only minted by Binance itself through rewards given out based on referrals made by users who hold large amounts themselves over time – meaning there will always be demand as long as people want new accounts created.
Conclusion
The crypto market is filled with uncertainty, but it’s important not to let fear of losing money cloud your judgment. In our opinion, Binance Coin (BNB) and KuCoin Token (KCS) are both good investments if you’re looking for long-term gains. Both coins have their pros and cons but they also share similar features such as being an exchange token or having their own blockchain ecosystem.
Ultimately, what matters most is whether or not each project has a solid team behind them who can execute on their goals which will ultimately determine whether the coins succeed or fail in the future – no matter how much hype surrounds them right now.
