Our team is not understanding KuCoin at the moment.
A few weeks ago, the entire crypto market took a tumble and fell from $800 billion to a low of around $350 Billion before recovering to the current $500 Billion.
And as most crypto fans have already seen, the recovery has been primarily Bitcoin and Ethereum, a little on the other highly ranked crypto tokens, and specific tokens such as ETC and ZCL, because of the forks, or speculation on the forks on those specific tokens, which has pushed their prices higher.
And overall the alt’s lower down on the list have performed really badly since the recovery, rising far less than the big crypto’s like Bitcoin and Ethereum mentioned above.
But KuCoin tokens, the tokens which are issued by the Kucoin crypto exchange, together with nearly all the tokens listed on Kucoin, have not followed this trend – they are actually dropping!
Kucoin Affiliate Program Background
For those not aware, KuCoin was an exchange similar to Binance, in that they had an interesting affiliate program which they used to build their community. But when they reached over a million users very quickly by affiliates driving huge amounts of new sign’s ups to the Kucoin website, Kucoin issued a very strange press release (using google translate or some other translator that didn’t do it any justice) stating that the affiliate program had been paused with immediate effect.
This was after spending a large amount of the KuCoin white paper for the Kucoin ICO, talking about the bonus KuCoin share program, and the Kucoin affiliate program as 2 central tenets of their strategy and vision for the long term.
As BuyPreSaleICO has already discussed in a previous posting, the reaction on Reddit and other crypto’s forum’s, was immediate in it’s condemnation – crypto affiliates were shocked that KuCoin could have suspended their affiliate program in the first place, and that they could suspend it with so little information.
At that stage, it was unclear, as to what would happen to affiliates already signed up. As it’s turned out, KuCoin has continued paying for affiliates that had signed up at the day of pausing (but there are problems with their system, and many affiliates have reported being unable to convert their earnings and other issues which we’ve already discussed), but they haven’t allowed any further affiliates to sign up – and remember the power of their program, was that the Kucoin affiliate program was 3 level’s deep, so clever internet marketers were building their 1st lines strongly, so that the 1st lines would build further lines – and this was effectively stopped with immediate effect!
So hundreds if not thousands of people vowed and pledged never to use Kucoin again, and whether it’s been because of the crypto “crash” in mid January 2018, or the affiliate debacle, the KuCoin tokens have been on a steady decline, and continue to fall lower and lower.
From a high of nearly $20 per KuCoin token, they were trading under $5 earlier today before recovering slightly.
But it’s not just the KuCoin tokens that have been falling. Kucoin has been one of the most aggressive crypto exchanges in issuing new tokens after the ICO’s over the last few months, with dozens being released on a monthly basis! When looking at the Kucoin home page, day after day, where they list a selection of the tokens that they trade, over the last month, you almost always see red instead of green. This means this price of the tokens listed on Kucoin have been steadily falling rather than rising!
It’s unclear at this stage why.
Some of the tokens which have been listed on Kucoin deserve to have decreasing prices, as they don’t look like amazing quality projects.
But some are, and even these crypto tokens have been taking strain the last few weeks.
One example is Deep Brain Chain.
About 2 months back, Deep Brain Chain was $0.10, and rose steadily to a high of $0.63, before coming all the way back to $0.05 at the time of crypto crash. It then rose to around $0.11 to $0.12, but today, while Bitcoin was rising above $11,000, DeepBrain Chain fell below $0.10.
It’s a quality project dealing with AI on the blockchain, so it’s surprising that this token isn’t increasing dramatically.
The other example is Trinity, which is to NEO, what the lightning network is to bitcoin.
Today it fell below $0.20 again.
Granted, these tokens are not only traded on Kucoin, and perhaps all these examples, and others, are coincidental and have nothing to do with KuCoin, but it does seem that the tokens on KuCoin are taking strain.
Many of the tokens are listed on the NEO chain rather than Ethereum, and are NEP-5 tokens, rather than ERC-20.
So we’re wandering if the crypto whales or someone in the know, knows of any problems with NEO, or the NEP-5 tokens – having said that, the price of NEO has been strong lately, currently trading at over $130, so if there was a problem with NEP-5 or NEO, it should have affected the NEO token price, and not just the new tokens trading on it’s platform.
We hope that it’s just current weakness, and has nothing to do with the KuCoin platform, or a problem with the NEO chain.
Having said that, the KuCoin strategy, does seem to be backfiring!
First they stopped the KuCoin affiliate program without proper explanation, which upset and angered many crypto Kucoin fans around the world.
And then the other thing which Kucoin is doing, is hyping up the new offerings which get listed on the KuCoin platform, by offering massive prizes, such as flashy sports cars, and lots of bonus tokens in the new crypto offerings for the biggest traders etc.
This has seen the new ICO’s being listed on KuCoin going up significantly soon after being listed, with massive volume, and then slowing down, and the prices dropping significantly once the competitions are over, and the volume slows down.
Our team loves the KuCoin platform, and we really hope that the KuCoin team take our posts seriously, and do 2 things which could help the KuCoin token and all the tokens listed on the Kucoin crypto exchange to increase in value over the long term:
- Communicate with all previous affiliates properly, explaining why they stopped / paused the KuCoin affiliate program the way they did, and creating a program which rewards the affiliates for the effort they previously put in.
- Create a method on KuCoin to promote new offerings without hyping them up, so that volume spikes, and then reduces dramatically once the campaigns end.