The price of KuCoin (KCS), a native token of the KuCoin cryptocurrency exchange, has fallen over the past seven days following insolvency rumours. At the time of writing, KuCoin was down 17.34% last week, trading at $8.75, according at CoinMarketCap.
KuCoin is the fifth largest cryptocurrency exchange in the world, with a 24-hour trading volume of $928 million. Its KCS token is the #49 digital asset on CMC, with a market cap of $858 million.
But earlier this week, rumors started spreading on Crypto Twitter that KuCoin would stop withdrawals as it was on the verge of bankruptcy. KuCoin CEO Johnny Lyu responded by saying that the company has no exposure to LUNA, 3AC or Babel.
Watch out for FUDs!
I don’t know who is spreading these pure rumors and what their intentions are, but #KuCoin has no exposure to LUNA, 3AC, Babel, etc.
No “tremendous suffering” from a “collapse of coins”, no plans to stop the withdrawal, everything on KuCoin is working fine.
“No ‘tremendous suffering’ from a ‘coin crash’, no plans to stop the pullback, everything on KuCoin is working fine”, Lyu said on Twitter, adding that “KuCoin reserves the right to take legal action” against those who spread false rumours.
Lyu was referring to three recent meltdowns in the cryptocurrency ecosystem: Luna, the governance token of the Terra ecosystem, which saw tens of billions of dollars in value wiped out last month in the spectacular crash of the Terra ecosystem; 3AC or Three Arrows Capital, a hedge fund that deposit for bankruptcy last week; and crypto lending platform Babel Finance, which last month suspended redemptions and withdrawals.
All three are examples of a liquidity problem in the crypto ecosystem right now, as digital assets have fallen in price over the bear market.
Lyu also responded directly to someone who asked if KuCoin had been exposed to Celsius, which would be close to bankruptcyand say: “Nope.”
Amid the crypto crash that accelerated in the first week of May, what started as rumors on Crypto Twitter have mostly turned out to be correct, including rumors about the solvency of Celsius, Three Arrows Capital, BlockFi and Celsius. Lyu insists his exchange is doing very well: “We are one of the few platforms still hiring,” he said, adding that KuCoin was “more active in the bear market” and launching new features.
KCS is actually up in the last 24 hours like most cryptocurrencies on Monday. But it still has the worst seven-day performance among major digital assets last week.
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