Binance and KuCoin are two leading centralized crypto exchanges. Binance, the largest exchange by trading volume, boasts an impressive 28 million users from around the globe. KuCoin, on the other hand, has a more modest memberbase compared to its rival platform, possessing around 12 million users worldwide.
These exchanges offer their own tokens, which serve as utility tokens: Binance Coin (BNB) and KuCoin Token (KCS).
Both of these tokens grant holders certain benefits. For instance, Binance and KuCoin users who hold BNB and KCS will get a discount on trading fees.
Perks of Holding BNB
Binance Coin (BNB), which is essentially a cryptocurrency like Bitcoin and Ethereum, was launched with an initial coin offering (ICO) back in 2017. At the time, 200 million BNB tokens were distributed, with 40% being allocated to the founding team, 10% to investors, and 50% to retail traders via public sale.
The 50% (100 million BNB tokens) available for public sale got hoovered up during the ICO at a rate of 15 cents per token. Hence, Binance raised $15 million worth of digital assets, which the company later used to upgrade its platform and improve its branding.
Users who hold BNB can trade it for other crypto-assets on various exchanges. However, what really stands out about BNB is its role in the Binance exchange. Binance users who hold BNB will receive a discount of up to 50% on trading fees.
Moreover, Binance is committed to burning some BNB tokens every quarter, making the coin more scarce and thus pushing its price to higher levels. In its whitepaper, Binance has pledged to use 20% of its profits every quarter to buy back BNB tokens and burn them.
The exchange will carry out its burning mechanism until it destroys 100 million BNB tokens — 50% of the total supply. As of now, BNB’s total circulating supply is just north of 166 million, which suggests Binance has burned around 34 million BNB so far.
Benefits of Holding KCS
KuCoin token (KCS) is also a utility cryptocurrency and the native token of KuCoin exchange. It was launched back in 2017 with a total market cap of 200 million. KCS offers holders a number of advantages, but what sticks out is its dividends program. KCS acts like a profit-sharing token that enables users to earn a passive income simply by holding coins.
More precisely, KuCoin distributes 50% of all trading fees with KCS holders on a daily basis. As of now, users who hold at least 6 KCS tokens on the KuCoin exchange are eligible to get their cut of the trading fees. Depending on factors like the cumulative trading volume on KuCoin, the bonus can be as much as 30%.
KCS holders also get a discount on trading fees. It goes without saying that if KCS appreciates in value, holders will garner profit. Like its rival counterpart Binance, KuCoin also offers a burning mechanism to make the coin more scarce and further push its value upwards.
Reportedly, KuCoin uses 10% of its profits every quarter to buy back KCS tokens and burn them. The program will continue until 100 million KCS tokens (50% of the total supply) are burned. As of now, KCS’s total market cap is just over 170 million, which suggests that approximately 30 million KCS tokens have already been burned.
BNB vs. KCS: Price Performance
Both BNB and KCS offer unique perks for holders, making them valuable investment options. However, when it comes to price performance, BNB is the clear winner.
Data by Coinlib reveals that KCS has appreciated by around 270% since 2018 when the coin entered the markets. Over the same span of time, BNB has appreciated by over 5470%, becoming the third-largest cryptocurrency by market capitalization.
In numbers, BNB hit the markets trading at 11 cents per coin back in 2017. However, the coin is currently trading at around $500. On the other hand, KCS entered the markets trading at 86 cents but is currently priced at around $13 per coin.