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Binance Staking vs KuCoin's Pool-X vs Crypto.com

By Inkarias - 2020-04-06

Staking solutions today occupy an important part in the economy of cryptocurrencies in general but also a place of choice to develop passive income easily and in all simplicity. As we mentioned in our previous comprehensive analysis of the solutions offered by Crypto.com, KuCoin and Binance, the staking solutions are many and varied and offer many advantages depending on the system and the platform used. Although the vision around staking was implemented several years ago, the solutions presented in this document were only implemented more recently in the years 2018-2020 to complete the existing services and to answer to investors demands.

Native exchange solutions

The three platforms compared in this document are all well-established exchange solutions within the crypto sphere. Binance and Kucoin, two companies in competition since their respective launches in 2017, enjoy significant notoriety in this area as well as an already well-established investor base.

For its part, Crypto.com originally founded as Monaco Technologies GmbH in June 2016 and rebranded to Crypto.com on July 6, 2018, has had significant success with its innovative solutions including MCO cards. All these crypto exchanges seek to offer both Basic and Advanced trading with various pairs across multiple currencies. If an investor wants immediate access to new coins for staking, he has access to a large variety of possibilities to choose. Between the 3, both Binance and Kucoins offer hundreds of trading pairs, including some based on stable coins, while Crypto.com is far behind with only about 35 active trading pairs.

These entities also bring several features to improve user's trading experience in general. Unlike Crypto.com, both Binance and Kucoin platforms allow margin trading (currently limited to some currencies with rules and specifications) and lending. With the latter lending solution, users on the platforms can earn a huge amount of guaranteed interest on their crypto holdings without having to expose themselves to any risk. Between fixed and flexible deposits across numerous crypto pairs, investors can earn daily and for a certain period of time. Kucoin currently offers 15 possible pairs ( USDT, BTC, ETH, EOS, LTC, XRP, ADA, ATOM, TRX, BCHABC, BCHSV, ETC, XTZ, DASH, and ZEC) while Binance platform only offers 11 (LTC, TRX, BCH, BNB, BTC, BUSD, EOS, ETC, ETH, LINK, USDT).

At the moment, Crypto.com hasn’t integrated a lending or margin trading solution for its customers. Furthermore, Crypto.com has implemented a unique mechanism with the MCO cards. The 5 different levels of credit cards are directly tied to the amount of MCO a user stakes via their mobile application and thus their participation in the network. Crypto.com debit cards allow users to earn rebates on popular services such as Spotify, Netflix, Expedia and AirBnB, along with cash-back on virtually all purchases.

Finally, the three platforms help new crypto projects entering the crypto market via incentives to promote them to investors. Binance Launchpad and Kucoin Spotlight serve as kickstart platforms, giving project teams visibility and a future by bringing their user base into the funding phase (ICO, IEO or any funding program). At the same time, the Syndicate from Crypto.com is a fundraising platform for the most promising crypto projects to list their coins or tokens on the Crypto.com Exchange. All the functionalities included in these systems are often powered by native tokens, helping reduce general costs and helping to obtain discounts and advantages across the ecosystem.

Different ecosystems powered by exchange tokens

Binance: 1 native token

Binance Coin, namely BNB is a token issued by Binance exchange which allows investors to benefit from discounts on transaction costs. BNB tokens are also widely used on the launchpad to fuel new projects or directly on the own decentralized exchange created by Binance. The Binance DEX is working closely with the Binance chain and is powered by BNB token for all its operations.

Kucoin: 2 native tokens

POL is the TRC20 TRON-based token that plays a central role in the Pool-X ecosystem, being used as the benchmark asset of liquidity pricing on the platform and for liquidity certificate records. At the same time, KuCoin Shares (KCS) is the native exchange currency used amongst all the services offered on the exchange and offering trading discounts and advantages.

Crypto.com: 2 native tokens

Crypto.com platform uses two different tokens, MCO and CRO, which serve different roles in the company’s larger ecosystem. MCO, the first token created by the project, is used as a staking resource to unlock tiered benefits and to upgrade credit cards with higher feature sets. CRO, the second token, is used as the standardized medium of exchange for all transactions on Crypto.com blockchain.

A common finality with different staking methods

As we introduced the staking methods in our last articles, we won’t add the whole process of staking on each platform here. Each platform stated in this article offers both soft and personalized staking. However, between these three major competitors, Crypto.com has implemented a unique staking solution that others haven’t.

While Binance and KuCoin implemented standard staking with a lockup period, Crypto.com has implemented a kind of compensation to reward holders. Even if this solution is considered as Staking by finality, the system itself isn’t considered as a Staking mechanism by technical nature. With Crypto.com soft staking, crypto investors holding their assets on the exchange account can earn daily rewards (a minimal amount is mandatory to continue to receive rewards). CRO staking is quite different and requires a minimum stake of 10,000 CRO for 6 months. Soft Staking allows investors to stake top cryptocurrencies equivalent such as Bitcoin, ETH and even Stablecoins directly by holding CRO coins in their account.

Furthermore, each company has its own set of preferred currencies supported on the platform:

  • 13 coins/tokens on Crypto.com
  • 19 coins/tokens on Binance
  • 6 coins/tokens on Kucoin

Each platform uses its own fees policies to power the exchanges operations. While Binance and Crypto.com don’t charge fees directly at the opposite of Kucoin charging 8% for mining fees, we can consider that the requirement of holding CRO and BNB to stake is already a replacement for the fee system itself and is sufficient to ensure operations.