- The initial coin lockup that KuCoin specified in the whitepaper, expires September 2.
- The price action was not confident, but it could drop even further after the coin release.
- KuCoin launched a proof-of-work mining pool.
YEREVAN (CoinChapter.com) – KuCoin, the sixth-largest crypto exchange by volume, could face losses in the upcoming sessions due to the scheduled release of 70 million of its native KCS tokens. Additional coins could skew the supply-demand balance and result in a decline in the digital asset’s value.
Initial KuCoin lockup
The KuCoin whitepaper describes all the terms of the coin lockup. It refers to September 2, 2021, as the date of the coin release. The exchange locked the 70 million coins in question in September 2017, intending to maintain a stable long-term value for the KCS token.
In detail, the initial coin lockup, also known as the ‘vesting period’ always specifies the time frame of the release. It is used as a hedge against deflation. Early investors could spark a sell-off wave once the token hits the market. Subsequently, the asset in question could decrease in price.
Also read: ADA falls over 16% after Cardano levels up crypto compliance efforts.
KCS price action
KCS hit a consolidation period ahead of the coin release. The KCS/USDT (Tether stablecoin) pair traded at 12.5 in the Thursday session. However, the digital asset could not break through a resistance line at 14.3 USDT and slide down to the 20-day exponential moving average (EMA-20: blue wave).
IF the downtrend continues, the cryptocurrency might face a bearish period, backed by the 70 million coin release.
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Other news for the crypto exchange
KuCoin launched a proof-of-work mining pool, with eco-friendly incentives, after Binance and OKEx exchanges. The pool will offer discounts to all miners using renewable energy sources.
“As the mining difficulty increased, the proportion of individual hashrate is largely reduced to obtain a stable income, except for the fixed costs of electricity, Internet, and equipment maintenance. Therefore, the mining pool was created to pursue a more stable income by connecting global miners to the platform to share hashrate and rewards”
announced the company.
The KuCoin mining pool claims to offer lower fees than other pools and more efficient mining rewards. Johnny Lyu, the chief executive of the company, commented on the new mining pool, pointing out its advantages.
“For existing KuCoin users, it will become straightforward to set up their mining devices to generate passive income right away. Miners can benefit from the one-stop mining service platform and its features to get up and running very quickly,”
said the CEO.
As the 70 million KCS coin release approaches, the digital asset is consolidating around its EMA-20. The release could tank the price further by shifting the supply/demand balance. While the new mining pools could positively affect the KuCoin platform as a whole, its native token might face a setback in the upcoming sessions.
Also read: Bitcoin miners want to sell BTC for way above $50K, new analysis shows.
