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What is Behind The Rumors of KuCoin’s Insolvency?

The crypto FUDfest is in full swing with rumors circulating over another potential insolvency. This time it is Seychelles-headquartered crypto exchange KUCOIN that has fallen into the spotlight. Therefore, in this article, you will discover more information about this situation:

Unfounded KuCoin FUD Timeline

On July 2, KuCoin CEO Johnny Lyu denied all rumors of the company being insolvent. Furthermore, he added that KuCoin had no exposure to or the embattled Three Arrows Capital (3AC).

He added that there was no “immense suffer” from any “coin collapse”. Additionally, there were no plans to halt withdrawals and everything on KuCoin was operating well, he said.

The comments came in response to a July 2 by the anonymous Twitter account ‘@otteroooo’ to their 30,000 followers.

The account warned, “WITHDRAW FROM KUCOIN RIGHT NOW.” It added that it was not a drill, encouraged followers to retweet, and said “otter hardly wrong in such matters.” Nevertheless, there was absolutely no evidence whatsoever to back up this claim.

‘Otteroooo’ has since tweeted they have been contacted by Lyu which is why there was a delay in producing the evidence.

The KuCoin CEO argued that the company was in a strong position. Additionally, he mentioned the completion of $150 million in fundraising at a $10 billion valuation in May.

Moreover, Lyu continued saying that it was one of the few platforms that are still hiring. Furthermore, KuCoin has become more active in the bear market with new feature launches. There was also a threat of legal ramifications.

“For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions,” he said.

The reaction from the crypto community was mixed. Some said they had withdrawn their crypto already. However, others criticized the anonymous poster for spreading FUD and reputational damage without any proof.

KCS Price Reaction

KuCoin’s native token, KCS, has taken a hit on the FUD regardless. Before the fiasco on July 1st, was trading at $10. It has since dumped 18% in a fall to $8.22 at the time of writing this article

KCS has lost 23% over the past week. Furthermore, the exchange token is down 72% from its December all-time high of $28.83 according to CoinGecko.

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 7/4/2022

Digital & Hitech

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