The value of the KuCoin shares are totally undervalued. A Kucoin Share is currently trading at just under $ 22. And now it comes: If you compare the KuCoin Exchange with Binance and take into account the number of customers, then you come to a value of KCS that should be much higher: The value of a Kucoin Share should theoretically be 350.67 US dollars. Why is that? How does this calculation work?
Let’s take Binance here as a reference value, as Binance is the most famous Bitcoin exchange with the most customers. Binance has more than 30 million users. KuCoin has also grown quite a bit and this exchange is currently expanding in various countries. This is shown by the job advertisements. Precisely because of this, a comparison is super exciting. KuCoin is growing rapidly and currently has a little more than 10 million customers. So this is 3 times less than Binance has customers. Therefore, the token from KuCoin should actually be worth a third as much as the Binance BNB token.
However, you still have to consider the number of tokens here. Both programs are similar, both exchanges carry out token burns. This means that in order to prevent inflation, which would result from the distribution of the tokens, both exchanges burn tokens at regular intervals. These actions are publicly visible in the Token Explorer. There you can see immediately that there are only half as many KuCoin shares as BNB tokens. So you can calculate the value of a KuCoin share two more times. The current price of a KuCoin share is $ 22. Compared to the number of customers and the BNB price, a KCS should be worth 350.67 US dollars.
Here are the key data for the calculations:
Total number in circulation aka supply: 166,801,148
Market Cap [USD]: 87’767’389’304
Current price [USD]: 526
Total number in circulation aka supply: 80,118,638
Market Cap [USD]: 1’728’884’684
Current price [USD]: 22
According to the Milchbüchlein invoice, the price of KCS would have to be: -> 350.666666667 US dollars.
One can criticize this calculation. It’s not just about these numbers. For example, it is not just the number of customers that is important, but also the distribution of these customers across the country and region. It also plays a role how much these customers are invested, how many trades they make per day and how high the fees are.
And one detail is particularly important: Bitcoin exchanges are only really valuable if they have the necessary licenses in the corresponding markets.
That was the case before. Startups were only really valuable when they were in possession of patents.
Nevertheless, one can say that KuCuoin and Binance are pretty similar in terms of field of activity and customers. And the programmed tokens BNB and KCS are almost identical. Whereby there is actually more to be said for KuCoin, because the payouts are higher, since everyone earns directly from the success of the exchange and its fees with the KuCoin shares. But this value is difficult to take into account, because you don’t know how much fees will come together in the future. BNB, on the other hand, has better marketing and greater experience; and more customers.
Registration with Binance:
KuCoin Invitation Promo Code:
Foto: Public Domain via Unsplash.
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KuCoin Shares: That’s the Real Value of a KCS!