Cryptocurrencies were once synonymous with blockchains, but recently many exchange platforms have launched their own native tokens using established blockchains. Notable examples include Huobi Global and KuCoin. This article examines the use cases of their tokens, how they operate, and which one may be the better investment.
KuCoin launched KuCoin Shares (KCS) as its utility token in 2017. Initially issued on the Ethereum blockchain, KCS had a total supply of 200 million tokens, with a plan to buy back and burn half, leaving 100 million in circulation. Holders of at least 6 KCS receive daily rewards distributed from 50% of KuCoin’s daily trading fee revenues, which are used to buy back KCS. KCS is also used to pay for discounted trading fees on the KuCoin exchange.
Beyond fee discounts, KCS is supported across several platforms and services such as SwirlPay, PlayGame, Splinterlands, Constant, CoinPayments, and others. In January 2021, KuCoin introduced a monthly buyback-and-burn program using 10% of its net profits as a deflationary measure. KuCoin has stated plans to evolve KCS into a native token for its broader financial services ecosystem and to enable governance functionality for the KuCoin community in the future.
Huobi Token (HT) launched in 2018 and serves as a utility and community token for the Huobi ecosystem. HT holders can participate in platform governance, earn rewards, and gain access to exclusive events or token sales. HT was introduced as an ERC-20 token and also operates within the HECO chain to support DeFi applications and integrations.
Like KCS, HT is subject to periodic token burns. Huobi has committed to buying back HT using 20% of the platform’s generated revenues. HT holders can receive significant discounts on trading fees—reported up to 65%—and gain early access to new projects through Huobi Prime and other platform features, creating additional utility and potential value capture.
At the time of this comparison, KCS traded at a higher price per token than HT (approximately $17.54 versus $9.00), while HT had a slightly larger market capitalization (roughly $1.4 billion compared with $1.3 billion for KCS). Considering its broader feature set—including higher fee discounts, governance participation, and strong integration across Huobi’s services—HT may present a stronger long-term investment case among the two.
It is important to note that, unlike many fully decentralized cryptocurrencies, exchange-issued tokens such as KCS and HT may not offer complete decentralization. Their value and utility are closely tied to the fortunes and policies of their issuing exchanges. As with any investment in digital assets, exercise caution and perform thorough research before investing.