Skip to content

Kucoin CEO Denied Rumors of Insolvency

Kucoin CEO Denied Rumors of Insolvency
The KuCoin utility token KCS has been struggling recently as the main cryptocurrency exchange deals with a deluge of insolvency rumors.

According to Tuesday’s figures, the price of KSC has dropped 18.68 % over the previous week and is currently trading at $8.94.

KuCoin vs USD
KuCoin vs USD. source:

Some reports claim that KuCoin had exposure to the failed UST and LUNA cryptocurrencies from Terra as well as the bankrupt crypto hedge fund Three Arrows Capital.

With $927 million in 24-hour trading volume, KuCoin is the fifth-largest cryptocurrency exchange in the world. KCS, which has a market value of $858 million, is the 49th most valuable digital asset, according to CoinMarketCap.

Despite the founder’s promises that the cryptocurrency exchange won’t restrict withdrawals in the same way as many of its rivals, KCS has continued to decline this month.

KCS has lost 14% of its value so far this month as a result of investors being alarmed by changes in the global macroeconomic environment as well as by the vulnerability of other major crypto exchanges’ balance sheets in the wake of a wave of layoffs and operational failures brought on by the insolvency of a few large clients.

The native token of the exchange lost around a quarter of its value during the past week, with Saturday accounting for more than half of that loss. KCS has lost more than half of its value since the end of May and is down more than 60% from record highs set in December 2017.

The CEO denies anything is wrong at KuCoin

KuCoin CEO Johnny Lyu clarified that the company had no exposure to Three Arrows, LUNA, or Babel in response to rumors of its dissolution.

“Be aware of FUDs! Not sure who’s spreading these sheer rumors, and what their intentions are, but #KuCoin does not have any exposure to LUNA, 3AC, Babel, etc. No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.“

The company raised $150 million in a fundraising round in May of last year, valuing the exchange at $10 billion.

The company raised $150 million in a fundraising round in May of last year, valuing the exchange at $10 billion. According to insiders, KuCoin went on a hiring rampage and expanded its website’s functionality.

Market analysts claim that KCS has nonetheless been impacted by the linked FUD (fear, uncertainty, and doubt).

Even if the larger crypto market can, KuCoin may not be able to launch a big recovery until issues with its balance sheet are overcome.