Kucoin is a very popular cryptocurrency exchange. Not only can you trade your cryptocurrencies on Kucoin, but you can also stake your tokens and be awarded for doing so, and you can invest in brand new projects through their Spotlight platform (often referred to as Launchpad on other platforms). Here you can buy tokens during so-called IEOs (Initial Exchange Offerings), and you will then receive the tokens at a low cost, and hopefully, be able to sell with profit or just hold the tokens and see the value increase over time. But, how can you take part in initial exchange offerings on Kucoin? And is it worth it?
The first thing you need to take part in a Spotlight sale on Kucoin (an IEO), is that you need to have a verified and KYCd Kucoin account. If you haven’t done so yet, click the link below to visit the Kucoin website and to get started.
Kucoin has its own token, KCS. This is a token worth holding for several reasons.
- You receive rewards daily for holding KCS, meaning that just holding it will daily increase your token amount. The daily reward is based on the trading volume and fees gathered the day before. The more KCS tokens you hold and the higher the trading volume (not done by you but on the exchange in general), the higher the daily rewards.
- You can use KCS to pay for your trading fees. If you decide to do so, you will pay 20% less in fees than if you just pay fees in the normal way.
- You need to hold KCS in order to be a part of the launchpad projects on Kucoin. During the most recent spotlight project, a minimum of 100 KCS was required. At the time of writing, 100 KCS has a total value of $2000.
The most important for you to know about right now is that you need a verified Kucoin account, and you will most likely need at least 100 KCS in your account to be a part of future token sales on Kucoin.
Besides this, there are certain countries that are not allowed to be a part of Initial Exchange Offerings on Kucoin, and during the most recent Spotlight project, these countries were prohibited from joining the sale:
“Belarus, Myanmar, Ivory Coast, Cuba, Mainland China, Democratic Republic of Congo, Republic of Congo, Iran, Iraq, Liberia, North Korea, Syria, Venezuela, Yemen, Zimbabwe, United States, U.S. Outlying Islands, Japan, Canada, East Timor, Cambodia, Laos, Tanzania, Uganda, Mali, Afghanistan, Albania, Central African Republic, Somalia, Malawi, Mozambique, Kyrgyzstan, Bosnia and Herzegovina, Uzbekistan, Turkmenistan, Burundi, South Sudan, Sudan (North), Republic of Guinea, South Africa, the Republic of Northern Macedonia, the Lebanese Republic, Kosovo, Libya, Barbados, Botswana, Ghana, Jamaica, Mauritius, Nicaragua, Panama”
How does a token sale on Kucoin happen?
Would you like to join a future Spotlight sale on Kucoin? This is what you will need to do!
- Make sure to visit the Kucoin website and select the EARN option in the menu and select SPOTLIGHT from the dropdown menu. Check this page regularly in order to not miss out on any of the upcoming token sales.
- When the information is given, make sure that you have the necessary number of KCS tokens in your account and when it is possible, register to be a part of the token sale.
- When the registration process is finished, Kucoin will do the math and they will deduct the payment for the tokens you have bought from your wallet. If they do not find the needed KCS tokens, you will not receive the tokens you registered to get.
- After you have paid for the tokens with your KCS Balance in your wallet, you will receive the spotlight tokens. Normally, trading will open for the new token a few hours after the tokens have been sent to the different wallets.
That is it. You are now ready to join future token sale events on Kucoin. But, one question remains – is it worth it?
Is it worth buying tokens during a Kucoin IEO?
We bought tokens during a Kucoin Spotlight even for the first time in January 2022, during the ClearDAO (CLH) sale. The price per token was $0.01 during the sale. We wanted to get lots of tokens, but since there are lots of people trying to get a spot in these sales, you will only receive a tiny portion of tokens (compared to the number you really want to buy).
What is interesting is that as trading started, the price of the token was $0.4. In other words, that is a 40x increase which is awesome.
However, you do not receive all your tokens at once during the Kucoin Spotlight projects. Instead, you receive 10% of your tokens at once, and later you will receive 10% once again 14 days later, and then 10% more 14 days later. So, all in all, it will take almost 6 months before you have received all of your tokens. This is, however, a healthy way of solving the problem in which whales dump their holdings at once, making this a better version than the one used by Binance who drop all the tokens at once (at least we consider this to be better).
Is ClearDAO the first Kucoin Spotlight project to enjoy such a price increase from the token sale? Let us just take a look at a couple of other projects.
- VictoriaVR had a token sale price of $0.00295 and the current trading price $0.45 (which is way more extreme than ClearDAO).
- Chumbi Valley (CHMB) had a token sale price of $0.001 and the current trading price is $0.066
- IX Swap (IXS) had a token sale price of $0.14 and the current trading price is $0.15.
As you can see above, all projects have experienced great gains. IX Swap might seem bad, but this token launched in September 2021, and it was trading at $0.6 at first and has slowly suffered from a price decrease until today’s level since then.
Based on what we have seen from the projects above, you are most likely to experience some crazy gains in a few hours if you join any future spotlight project on Kucoin!
We hope this article has given you the information that you were looking for. If you have any further comments or questions, or if you would like to share your own experience, please write a comment and let us hear from you!