Crypto

KuCoin Exchange – Review

High-growth micro-cap heaven with reasonable probability to meet 300%+ return tokens

Launched on Sep 2017, KuCoin has built a reputation of the exchange for high growth small-cap tokens, thanks to their strict listing criteria and deep fundamental research.

As at 15-Aug, 161 tokens (excluding stable coins) were confirmed under their Premaire Market section as BTC or USDT pairs.

Many tokens were listed in late 2017-2018Q1 (just after services launch) and mid-2019, when crypto assets market was entering into bull mode. New listing was slowed down from 2019Q4, but is becoming active from 2020Q3. (Note that 2020Q3 on the chart is just half period till 15-Aug)

More than 100 tokens were Micro-cap tokens with less than $100mn market cap as at KuCoin listing date. Lard/Mid-cap listing were pretty rare in Premaire Market section.

Let me excuse on my analysis. I don’t use any crypto assets market intelligence tools, i.e. all information were from publicly available sources through manual copy & paste. So, I couldn’t gather much information of multiple dates, instead I used token price & market cap as at 15-Aug 2020 for performance analysis. Using snap shot data of specific date is not fair, since each token has different life cycle. Some tokens may well materialize its value as at 15-Aug, while other tokens may be in death valley. So price / market cap analysis is just for reference purpose.

Market cap as at KuCoin listing date vs as at 15-Aug is compared. If market cap is increased, such tokens are categorized as “Outperform” with blue color, while decreased tokens are categorized as “Underperform” with red color.

Curiously, among 148 tokens, whose market cap data is publicly available, only 28% tokens outperformed, while remaining 72 tokens underperformed, i.e. their market cap was decreased from listing date. Most of outperformed tokens were micro-cap.

I know you want a deeper detail on micro-cap. See above mincro-cap only chart. Micro-caps with lower than $25mn listing market cap (super micro-cap) have the highest winning ratio.

Let’s have a look at token price performance. Average price return of all 161 tokens from listing to 15-Aug was 63%. If you have invested $100 for each token upon listing, you have spent $16,100 in total, and your investment was increased to $26,242. Not bad. Note that current market is bull mode, so the token pricing may be over-evaluated at this timing.

The 63% average return highly relies on some super outperformed tokens. I named them as Platinum, which had 300%+ return. Without 9 Platinum tokens, average return was -45%! Yes, micro-cap investment is a journey to find ultra outperforming tokens, that appear frequently.

Although it may be related to life cycle of tokens, it may be related to recent bull market condition or KuCoin may make listing criteria stricter recently, most of high performance tokens were listed in 2019/2020.

VERDICT

Strict listing criteria & deep fundamental research makes KuCoin Exchange high-growth micro-cap heaven. Reasonable probability to meet 300%+ return tokens.

Just simple buy of listed tokens has given a decent return. Proper profit booking & loss cutting strategy will further maximize return.

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