The KuCoin Token worth declined sharply through the American session on Friday. The token slipped to a session low of $19.34, which was its lowest degree since March twenty eighth this 12 months. KCS has declined by greater than 12% from its YTD excessive, bringing its whole market cap to over $1.4 billion.
Is KCS an excellent purchase?
KuCoin is without doubt one of the greatest firms within the cryptocurrency business. The agency runs a preferred change that handles billions of {dollars} on daily basis.
Like different firms within the business, KuCoin has launched its private token generally known as KCS, which is used to incentivize utilization of the platform. Holders of the coin often obtain a reduction at any time when they use it to commerce.
The KuCoin worth has held higher than different cryptocurrencies up to now few weeks. This efficiency is usually due to the funds that the corporate raised final week. The agency raised $150 million from a bunch of buyers corresponding to Bounce Buying and selling, Circle Ventures, and Matrix Companions. It valued the agency at $10 billion.
The brand new funding spherical was shocking for 2 major causes. First, many enterprise capital companies are struggling as the worth of their holdings have fallen. For instance, Tiger International and Softbank have misplaced virtually $50 billion mixed this 12 months.
Learn our complete review of KuCoin right here.
Second, the spherical was shocking because the crypto business is struggling because it was evidenced in the latest outcomes by Coinbase. The agency misplaced over $400 million within the first quarter. Worse, its market cap has dropped to about $14 billion as a publicly-traded firm. At its peak, it was valued at over $75 billion.
KuCoin intends to make use of the funds to increase its enterprise to different sectors like Web3. This can embody constructing decentralized exchanges, video games, and different merchandise.
KuCoin token worth prediction
Turning to the four-hour chart, we see that the KCS worth diverged from different cryptocurrency costs. On the four-hour chart, the coin shaped a cup and deal with sample that’s proven in black. It has now pulled again and moved sharply under the higher a part of the sample.
It has additionally moved barely under the 25-day and 50-day shifting averages whereas the Relative Energy Index has moved under the oversold degree. Due to this fact, the sell-off will doubtless proceed as sellers goal the important thing assist at $18.