We all know that by holding Kucoin shares, Kucoin pays back some of the collected Fees to their KCS holders, called Kucoin Bonus!
But is it worthwhile?

My Kucoin shares

At the moment I'm holding 81 KCS but on the first of February it was only 52. I did puchase some extra KCS at the 20th of February, increasing my holdings to 67. On the 23th I did expand this to 81.
My total investment in KCS is just a little bit above 500 euro. The average book price in my case is 6,23 euro.
The current value of my KCS is only 243 euro.

Daily Volume

Not only the amount of KCS you have is important but also the daily volume of Kucoin.
This is where the problem lies. Around the 15th of January the Kucoin daily volume was almost $100 million and Kucoin climbed to the top 15 of exchanges.
Now they only have a daily volume around $60 to $65 million.
So why did the volume drop so hard? There are several reasons for this. The major important reason, according to me, is that Kucoin did loose some trust. They cancelled their referral program without prior notice and the pay-out of the GAS and KCS was problematic. The most important thing for an exchange (besides the security and technical part) is trust.
The other reason is ofcourse the bear market which did pop up.

My payout in February

In total a whopping (please be seated) 1,02 euro.
If I do covert it to BTC it would be 0,00011155 BTC.
Kucoin pays out this dividend in the coins in which the fee was collected. In February they did give me a pay-out in 120 different coins.
The best coins of course were: Bitcoin (0,38 euro or 0,00004141 BTC), Ethereum (0,20 euro or 0,00002247 BTC) and NEO (0,03 euro or 0,00000403 BTC).
Based on these number the total year pay-out would be 13,30 euro. A ROI of 2%.

The problem

Most of the pay-outs in the coins is below the trading threshold. For most smaller coins the minimal trade amount is 10 coins. For most coins this number will not be reached with the current KCS holdings.
So if you do want to cash these, a lot of work has to be put into in. By first buying enough coins so that the dividend coins can be sold. For the moment I'm not planning to do this exercise.

But what will it be in the future?

Kucoin is in my opinion still one of the best exchanges. The crypto market is still in the early phases, so a lot of have could come to the exchanges, from which Kucoin also will profit.
Kucoin is also improving the payout proces of the Kucoin Shares and the Gas rewards. Which is a good sign and should increase their trust a little bit.

When Kucoin decides to open up the referral program, a raise in volume can be expected. So the pay-out will also rise!

My advice

The price of the KCS is low, really low at the moment. I my eyes too low for the future that Kucoin has!
But if you do want to step in, buy enough shares. Don't buy shares for the payout, consider this a nice side effect, but do buy shares with a selling plan in mind!

At the moment I'm not in a position to sell my KCS, cause by doing that I would loose to much money. I will stick in there and probably will try to increase my holdings, trying to bring down my average book price.
If the price of KCS drops below 2.8 euro, I will be doing this. Expanding my holdings to 150. This should make it easier to collect enough coins to be sold, decreasing my losses.
When the price then doubles up I will be selling 50 again, so that my target of 100 is reached at an acceptable price.

So, the answer to the original question: No it is not worthwhile based on the kucoin bonus, but at the moment it is worthwhile based on the current KCS price!

What are your ideas about Kucoin?

Keep the faith,
Peter