Evaluating KuCoin Staking

[dr_ed]

Another coin I've been watching for several months is KCS, which is easy to stake by just keeping it on the KuCoin Exchange....with the obvious risks involved in doing that.

Fwiw, the KuCoin Exchange generally gets high marks for security and they've never been hacked.

Here's a graphic from Staking Rewards dot com that shows the recent reward trend. It rose rapidly from the baseline in July and then took a sudden dive, but has held at a level above 20% staking ROI and is headed higher again.

 

The price of KCS has not been as volatile over the summer as most alts I follow.. While it might not look that exciting, the growing volume is encouraging, and it looks like a decent entry. My mentor has been recommending accumulation of this coin for several months, and it looks like a really decent entry to me now.. Price at this moment is $1.57.

I do expect KCS to have decent price appreciation over time. KuCoin Exchange has always been in the shadow of Binance, but it is a good exchange. Exchange coins can be valued using revenue models, which makes them attractive to institutional investors imho. But it's the staking that really makes this coin appeal to me.

I'm not currently long KCS, but I'm looking to start a position and DCA as long as the current trend holds. Not financial advice, I'm a freakin' dentist, not a financial advisor.

Your comments are welcomed.

Here's a  look at what a 10K KCS portfolio would generate right now.

Edited August 23, 2019 by dr_ed

[dr_ed]

I've made a portfolio adjustment to allow me to take a moderate position at just over 1.55. I'll continue to report on the progress of Kucoin and the staking situation from time to time.

[dr_ed]

It is immediately apparent that most staking rewards calculators for Kucoin are WAY off. 

Let me cut and paste from a Reddit thread that explains what the source of the errors are. I am looking around for an accurate calculator.

 

Q:

Hi, can anyone explain why the official Kucoin Bonus Calculator (Kucoinshares.com) states that with my KCS holding and the current 24hr trading volume, I should receive 0.5 KCS bonus per day, but in reality, I'm only getting 0.04 KCS per day? Am I doing something wrong?

A:

(from Ku coin)

 Please be informed that KuCoin does not own any official calculator for the KCS Bonus. We do not encourage users to utilize the link you have provided as well. KuCoin still follows its own method in calculating the bonus and have not made any changes since its upgrade from July 10th, 2018. Kindly visit this article to know more about it. We do apologize if you had any confusions on your end and please know that we value your business with us. Have a great one!

https://kucoin.zendesk.com/hc/en-us/articles/360014925893-About-KuCoin-Bonus

 

A: 

(from thread)

That calculator doesn't account for Market Maker volume, which isn't charged fees. Kucoins volume that it actually makes money from is much lower than what that calculator shows.

https://www.reddit.com/r/kucoin/comments/cgna44/kcs_calculator_issues/

 

 

Edited August 26, 2019 by dr_ed

[dr_ed]

Okay, I think I found something useful. This calculator is the "real-est" one I've found, and it has the advantage of letting you change the volume number. You have to be able to do that, because the numbers that get reported are not the ones Kucoin is using to calculate your rewards.

Since the CoinMarketCap reported volume includes MM volume that KuCoin doesn't consider, you have to make a fudge factor. By working backward and looking at my rewards so far, the fudge factor is somewhere between 30% and 50%. Take away half of what's on CMC and you'll be close. This is a very rough guesstimate, which I can refine over time. But it's WAY closer than Staking Rewards dot com or any of the other KCS bonus calculators

Like today, the reported exchange volume on KuCoin Exchange is roughly 5 million. If you take away half that volume the bonus comes out about right.

https://www.bestcryptodividends.com/kucoin-shares-dividend-calculator

Here's an example.

By my arithmetic that looks like an actual 5.2 % return, which is still quite decent.