Quote from: CryptoCutie on November 05, 2017, 03:06:12 PM

whats the different between Kucoin and Biance?

Kucoin is a copy of Binance with a modified reward system. Both are incorporated in Hong Kong and both have long-term plans to develop decentralized exchanges.

Kucoin:
- 10% of trading fees retained by Kucoin
- 40% of trading fees distributed to referral program¹
- 50% of trading fees distributed to KCS holders as dividends
- 10% of profit used to buy & burn KCS until total supply is down to 100m KCS²

They plan to slowly reduce the dividends down to 15% of trading fees.
The dividends continue indefinitely, which makes Kucoin Shares look like a security in Hong Kong or USA³

1. https://news.kucoin.com/en/kucoin-will-launch-invitation-bonus-plan-on-1st-october/
2. https://assets.kucoin.com/kucoin_whitepaper_en.pdf
3. https://blog.gatecoin.com/delisting-of-dgd-icn-pay-and-mco-tokens-on-1-november-2017-90c2c45a3cdc

Binance:
- 20% of profit is used to buy & burn BNB until total supply is down to 100m BNB⁴
- BNB is used as a currency to pay trading fees with 50% discount.

Q3 profit was $7.5m, so they burned $1.5m worth of the BNB they had collected as fees throughout the quarter.⁵
It looks like it will take 10+ years to burn 100m BNB.

Advantages of Binance:
- The reward system is designed to make BNB look like a currency. They sold 120m BNB in the ICO, but they only buyback and burn 100m BNB. A lawyer might argue that there's no expectation of profit from this action, so it's not a security.
- Binance retains a higher % of revenue. More money to invest in building margin trading and decentralized exchange.
- As I mentioned in my previous post, BNB has more utility currently.
- The team has decades of experience building exchange systems at their previous company, Bijietech.
- Binance has deep industry connections. People like Roger Ver, Chandler Guo, Da Hongfei, Matt Roszak, and Vincent Zhou are holding BNB as angel investors.⁶
- Strategic partnership with Quoine, the first crypto exchange to be licensed by Japan FSA⁷

4. https://www.binance.com/resources/ico/Binance_WhitePaper_en.pdf
5. https://www.reddit.com/r/BNBTrader/comments/76h441/a_message_from_cz_ceo_of_binance_this_is_why_i/
6. https://www.binance.com/ico_review_en.html
7. https://news.quoinex.com/articles/binance-and-quoine-announce-a-strategic-partnership-to-build-global-liquidity-in-the-crypto-economy