Why did the price of KCS go up?
KuCoin Token (KCS) increased by 1.91% in the last 24 hours, slightly outperforming the overall crypto market, which rose by 1.64%. This growth is driven by a significant token burn, attractive staking rewards, and positive sentiment around exchange tokens.
- Token burn lowers supply – On September 26, 83,696 KCS tokens (worth about $1.04 million) were permanently removed from circulation.
- Staking incentives boost demand – Users can stake KCS to earn rewards in zkVerify (VFY) tokens through KuCoin’s GemPool.
- Exchange tokens gaining momentum – A recent Grayscale report highlights tokens like KCS as strong performers in Q3.
Deep Dive
1. Token Burn Creates Supply Shortage (Positive for Price)
What happened:
On September 26, KuCoin completed its 63rd monthly token burn, permanently destroying 83,696 KCS tokens valued at roughly $1.04 million. This is part of KuCoin’s plan to use 10% of its profits to buy back and burn KCS tokens, reducing the total supply (KuCoin Blog).
Why it matters:
- Fewer tokens available (currently 129.8 million circulating) combined with steady demand tends to push prices higher.
- Regular burns show KuCoin’s commitment to maintaining a healthy token economy, which builds trust among holders.
What to watch:
The next burn is expected in late October. If it’s larger, it could have an even stronger positive effect on the price.
2. Staking Rewards Increase Demand (Positive for Price)
What happened:
KuCoin’s GemPool started offering zkVerify (VFY) farming on September 28. Users can stake their KCS tokens to earn VFY rewards. The KCS staking pool has the largest allocation, with 1.25 million VFY tokens available.
Why it matters:
- Staking locks up KCS tokens, reducing the number available for sale and helping support the price.
- Additional rewards for VIP users and loyal KCS holders encourage people to keep their tokens staked longer.
3. Exchange Tokens Show Strength (Mixed Impact)
What happened:
According to Grayscale’s Q3 report, centralized exchange tokens like KCS, BNB, and CRO outperformed Bitcoin, helped by increased trading volumes (Bitget).
Why it matters:
- KCS benefits from a 10% month-over-month increase in KuCoin’s spot trading volume.
- However, the growth in derivatives trading for KCS is modest compared to competitors like KAS, indicating traders are cautious about using leverage with KCS.
Conclusion
KCS’s recent price increase is driven by a combination of reduced supply through token burns, increased demand from staking incentives, and positive trends in exchange tokens overall. While technical indicators show KCS might be overbought in the short term (RSI at 79.2 over 7 days), the 30-day moving average at $15.33 provides support.
Key point to watch: Can KCS stay above the Fibonacci 23.6% retracement level at $15.66 and aim for $16.13, the high from September? Keep an eye on KuCoin’s Q3 profit report for clues on the size of the next token burn.
What could affect the price of KCS?
KuCoin Token (KCS) balances its supply-reducing strategy with the growth of the KuCoin exchange, all while facing changing regulations.
- Burn Mechanism – KuCoin regularly destroys some KCS tokens, reducing supply and increasing scarcity, which helped push prices up by 45.04% over 90 days.
- Exchange Growth – KuCoin’s expanding user base and security improvements boost KCS’s usefulness, with over 41 million users.
- Regulatory Challenges – New rules in the U.S. and Europe create uncertainty, though KuCoin has secured a license in Thailand.
Deep Dive
1. Deflationary Burns & Tokenomics (Positive for Price)
Overview:
KuCoin uses 10% of its quarterly profits to buy back and burn KCS tokens, aiming to cut the total supply from 200 million to 100 million. In September 2025, they burned about 83,696 KCS (worth roughly $1.04 million), lowering the circulating supply to 127 million. This strategy has helped KCS’s price rise by over 51% in the past 60 days.
What this means:
By reducing the number of tokens available, demand could increase, pushing prices higher—especially if KuCoin’s profits continue to grow. However, since burns depend on KuCoin’s earnings, KCS’s value is linked to overall crypto trading activity.
2. KuCoin’s Growth Trajectory (Mixed Effects)
Overview:
In the first half of 2025, KuCoin reported more than 41 million users and launched a $2 billion Trust Project to improve security. The exchange is also expanding into regulated markets like Thailand. However, it faces strong competition from Binance (BNB) and Bybit (BGB), which challenges KCS’s position.
What this means:
Growing user numbers and new services like KuCoin Pay could increase KCS adoption. Still, exchange tokens have generally lagged behind Bitcoin’s performance (Bitcoin rose 109% year-over-year, while KCS rose about 109.68%), indicating some challenges in the sector.
3. Regulatory Environment (Potential Risks)
Overview:
KuCoin must comply with new European rules under MiCA and faces restrictions in the U.S., especially on derivatives trading. While some reports suggest a favorable environment for altcoins, rising centralized exchange trading volumes (nearly $9.72 trillion in August) could lead to tighter regulations.
What this means:
Getting licensed in places like Thailand helps KuCoin’s legitimacy, but sudden regulatory changes could affect liquidity and trading. It’s important to watch how U.S. regulators handle crypto exchange-traded products (ETPs) and how KuCoin progresses with MiCA compliance.
Conclusion
The future price of KCS depends on KuCoin’s ability to keep burning tokens, grow its platform, and manage regulatory hurdles. While reducing supply and expanding services offer potential gains, regulatory crackdowns or falling behind competitors could reverse those gains. The key question: will the burn rate in Q4 exceed the 83,696 KCS burned in Q3 to keep scarcity driving value?
What are people saying about KCS?
The buzz around KuCoin Token (KCS) combines its token burn strategy with the exchange’s growth prospects. Here’s what’s happening:
- KuCoin burned 83,696 KCS tokens (worth about $1.04 million) in September 2025, supporting a shrinking supply
- Technical analysis points to a possible breakout at $11.20, suggesting a 5% price increase potential
- A new partnership with Thailand to tokenize government bonds expands KCS’s real-world use
- Security audits and reserves exceeding 110% boost confidence among institutional investors
Deep Dive
1. KuCoin’s Largest KCS Burn Since May 2025 – Positive Signal
KuCoin announced burning 83,696 KCS tokens valued at roughly $1.04 million in September 2025. This is the biggest single burn since May 2025 and removed about 0.06% of the total token supply. With 34 consecutive quarterly burns completed, the circulating supply is now 127.3 million KCS out of a maximum 200 million.
Why it matters: Token burns reduce the total supply, which can increase scarcity and potentially support higher prices over time. This consistent burn schedule shows KuCoin’s commitment to a deflationary model.
See original announcement
2. Technical Analysis Shows Neutral Near-Term Outlook
A June 2025 technical analysis suggested that breaking above $11.20 could lead to a move up to $11.75. At that time, $11 was identified as strong support. However, by October 2025, KCS price had already risen to $16.01, breaking past those levels. Traders are now watching the $15.80 to $16.20 range for clues on the next price direction.
Why it matters: While the near-term outlook is neutral, the price action above previous resistance levels indicates strength. Traders will be watching for confirmation of either continued upward momentum or consolidation.
Read the analysis
3. Thailand Partnership Boosts Institutional Interest
KuCoin partnered with Thailand to launch the world’s first tokenized government bond on the blockchain, valued at $153 million. Following the announcement, KCS traded at $13.37, up 8.27% for the week. This partnership positions KCS as a key token in the digitization of sovereign debt, a market worth $128 trillion globally.
Why it matters: This real-world use case strengthens KCS’s appeal to institutional investors and highlights its role beyond just trading, expanding its utility in traditional finance.
Read the full article
4. Strong Security Audits and Reserves Build Trust
KuCoin completed its 34th consecutive monthly security audit in September 2025, verified by cybersecurity firm Hacken. The exchange maintains reserves exceeding 110% across major assets like BTC, ETH, USDT, and USDC. Proof-of-Reserves now covers 92% of user assets, up from 78% in 2024.
Why it matters: Regular clean audits and strong reserves reduce counterparty risk, making KuCoin more trustworthy for long-term holders and institutional clients.
View the security report
Conclusion
Overall, the outlook for KuCoin Token (KCS) is positive. The combination of increasing token burns (up 18% year-over-year), significant partnerships like Thailand’s tokenized bond, and robust exchange security measures support long-term growth. While the price is currently consolidating near $16, the ongoing reduction in supply (down 14.9% since 2023) creates potential for upward movement. Keep an eye on the KCS burn-to-revenue ratio, which is currently 10% of profits, as a key indicator of KuCoin’s ability to maintain buybacks during market downturns.
What is the latest news about KCS?
KuCoin Token (KCS) is making strides with improved security, new ways to earn rewards, and reducing the number of tokens in circulation. Here’s the latest:
- Security Audit Success (October 1, 2025) – KuCoin passed its 34th straight monthly audit, confirming all assets are fully backed.
- zkVerify Farming Launch (September 28, 2025) – KCS holders can now stake tokens to earn new DeFi rewards.
- Token Burn Milestone (September 26, 2025) – Nearly 84,000 KCS tokens were permanently removed, tightening supply.
In-Depth Look
1. Security Audit Success (October 1, 2025)
What happened:
KuCoin’s security report for September 2025 showed that the exchange holds more than 100% of the cryptocurrencies it promises to keep safe, including Bitcoin (BTC), Ethereum (ETH), USDT, and USDC. This was verified by cybersecurity experts at Hacken. This marks the 34th month in a row KuCoin has passed this audit without any issues. KuCoin also earned a top rating (AAA) on CER.live’s cybersecurity leaderboard.
Why it matters:
This consistent audit record builds trust, especially as regulators pay closer attention to crypto exchanges. It may also attract larger, institutional investors. Note that sometimes data updates can be delayed during system maintenance, which might temporarily affect public tracking of reserves. (KuCoin Blog)
2. zkVerify Farming Launch (September 28, 2025)
What happened:
KuCoin launched zkVerify (VFY) farming on its GemPool platform. Users can stake as little as $1, or KCS or VFY tokens, to earn rewards. The program offers 2.5 million VFY tokens (about 0.25% of total supply) across three staking pools. Bonuses are available for referrals and loyal KCS holders.
Why it matters:
This encourages people to hold KCS and engage more with KuCoin’s platform. However, the long-term success depends on how widely zkVerify’s zero-knowledge proof technology is adopted. Also, there are limits on how much reward can be earned hourly to prevent very large holders from dominating. (KuCoin Announcement)
3. Token Burn Milestone (September 26, 2025)
What happened:
KuCoin completed its 63rd monthly token burn, permanently removing 83,696 KCS tokens from circulation, worth about $1.04 million. The total KCS supply is now 142.28 million, with 127.28 million tokens actively circulating.
Why it matters:
Reducing the supply puts upward pressure on the token’s price, which has increased by over 51% in the last 60 days. However, the monthly burn only cuts about 0.06% of the total supply, so it’s a gradual approach toward the goal of a 100 million token cap. (KuCoin Announcement)
Conclusion
KuCoin Token (KCS) is balancing strong security, new staking rewards, and controlled supply reduction—factors that helped it gain 109% over the past year. As the altcoin market heats up (CMC Altcoin Index at 65), it will be interesting to see if KuCoin’s exchange-token model can keep pace with competitors like Binance Coin (BNB) and OKB.
What is expected in the development of KCS?
KuCoin Token’s roadmap focuses on growing its ecosystem, increasing its usefulness, and reducing the total supply of tokens.
- Smart Contract Upgrades (Q4 2025) – Improving the KuCoin Community Chain (KCC) to handle more decentralized finance (DeFi) activities efficiently.
- Decentralized Finance Integration (2026) – Making KCS a key token for KuCoin’s upcoming DeFi services like lending and borrowing.
- Enhanced Governance Features (2026) – Giving KCS holders more voting power on important platform decisions.
- Continued Token Burns (Ongoing) – Regularly reducing the number of KCS tokens to increase scarcity and value.
Deep Dive
1. Smart Contract Upgrades (Q4 2025)
Overview: KuCoin plans to upgrade smart contracts on its KuCoin Community Chain (KCC), a blockchain compatible with Ethereum’s technology. These upgrades aim to make transactions faster, cheaper, and support more advanced DeFi applications (KuCoin Blog).
What this means: This is positive for KCS because better technology can attract more developers and users, increasing demand for KCS as the network’s transaction fee token.
2. Decentralized Finance Integration (2026)
Overview: KCS will become the main token used for collateral and utility in KuCoin’s new decentralized lending, borrowing, and liquidity services. This is part of KuCoin’s plan to expand into Web3, the next generation of internet services (KuCoin Blog).
What this means: This could be good for KCS, but its success depends on how many people use these new services and how it competes with other established DeFi platforms.
3. Enhanced Governance Features (2026)
Overview: KuCoin wants to give KCS holders more control by letting them vote on important platform decisions like fees, which tokens get listed, and how funds are used (KuCoin Blog).
What this means: This is a positive step that may encourage people to hold onto their KCS tokens longer. However, delays in rolling out these features could reduce excitement.
4. Continued Token Burns (Ongoing)
Overview: KuCoin regularly “burns” (permanently removes) KCS tokens using 10% of its profits. For example, in September 2025, 83,696 KCS tokens were burned. The total supply has decreased from 200 million to 142 million, aiming for 100 million over time (KuCoin Announcement).
What this means: Reducing the number of tokens can increase their value by making them scarcer. However, this depends on KuCoin continuing to be profitable.
Conclusion
KuCoin Token’s roadmap combines technical improvements, increased real-world use, and strategies to make the token scarcer. These efforts could strengthen KCS’s role as a leading exchange token. Still, challenges like execution risks and overall market conditions for cryptocurrencies will play a big role. It remains to be seen if KuCoin’s focus on DeFi can help KCS weather the ups and downs of the crypto market in 2026.
What updates are there in the KCS code base?
I wasn’t able to find enough information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so I expect to have the details soon. Meanwhile, please feel free to choose another question or coin for analysis.