KuCoin suspends referral program
Decision made as the exchange grows to 2 million users.
According to a press release posted yesterday, Hong Kong-based altcoin marketplace KuCoin has suspended its referral program for new users. The program will continue rewarding users who participated in the program before 17 January, although they will no longer be able to generate new referral links.
The program works by rewarding participating users with the platform's native KuCoin Shares (KCS) each time a new user signs up using their referral code. The KuCoin Invitation Bonus was an integral part of the KCS whitepaper, and the removal of the program has prompted controversy across social media.
KuCoin explained its decision in the press release, claiming that because they have now reached 2 million users, it must focus efforts on the platform's security. While KCS may no longer be distributed via the referral program, users still receive discounts for holding KCS on the platform, alongside a lower 0.1% trading fee.
Referral programs have become a popular mechanic for attracting new users to exchanges, with Binance also offering users the option to get a friend or follower to sign up and receive 50% of their trading fees as commission paid out in the platform's native token. Such programs have become a popular way for cryptocurrency personalities to generate revenue, with referral links often being posted on YouTube and Twitter profiles. KuCoin removing its program could lead to a loss of promotion via such avenues.
According to CoinMarketCap, KuCoin Shares were trading at US$11.38 at the time of writing, down from their all-time-high of US$20.50, set less than a week ago on 12 January.
Disclosure: At the time of writing, James Edwards has holdings in ETH, ICX, NEO, AION, QASH, ADA, LINK, XMR, XRP, XLM, IOTA, OMG and TRX.