A dark Kucoin myth that has gained traction on Twitter is the result of the liquidity problems that various crypto firms are currently experiencing. In particular, this implied that the bitcoin exchange would soon stop allowing withdrawals through its system. Johnny Lyu, the CEO of Kucoin, reacted swiftly to correct the record and warn people who spread this incorrect information.
A choice that would be connected to LUNA’s demise and 3AC’s insolvency
On July 2, the @otteroooo account sent out a large invitation on Twitter to the cryptocurrency community and its followers to withdraw all of their holdings from Kucoin. Before urging everyone who received his message to share it widely in the interest of everybody, he clarified in his tweet that it was not an exercise. Notably, the publication of it confirms rumors that the cryptocurrency exchange will shortly stop accepting withdrawals. According to rumors, the action will be related to the demise of LUNA and the bankruptcy of Three Arrows Capital (3AC).
The response to the trade was quick, with its CEO using social media the same day to debunk the falsehoods he called FUD. Keep an eye out for FUD! I’m not sure who is circulating these allegations or why, but #KuCoin has no connection to LUNA, 3AC, Babel, etc. Everything on KuCoin is operating without any major issues caused by bitcoin crashes, and there are no plans to halt withdrawals, according to Johnny Lyu. He said that his business reserved the right to bring legal action against anyone found knowingly disseminating such unverified material.
Publication of the Kucoin H1 2022 Valuation Report is imminent.
The CEO of Kucoin published certain statistics that demonstrate the exchange’s strong financial condition in order to set the record straight. Notably, he remarked that despite the crypto winter, this is one of the few businesses in the sector that is still actively hiring. Mr. Lyu also said that in May of last year, Kucoin completed a $150 million investment round, which resulted in a $10 billion valuation.
In order to establish their own opinion on Kucoin’s financial situation, he asked investors to read the exchange’s future valuation report for the first half of the year. Being open and honest has always been one of our guiding values. Our H1 2022 assessment report, which will be released soon, will contain further information regarding our business operations,” he said.
Customers of Kucoin should thus calmly continue to withdraw funds from the exchange in the coming days, a service to which Voyager Digital customers are no longer entitled. The latter stated a few days ago that all platform activities will be suspended, obviously as a result of 3 AC’s default in repaying a 650 million dollar loan.
