kucoin

The cryptocurrency space has been filled with FUD over the past few weeks, following liquidity issues affecting some leading firms, such as Three Arrows Capital, Celsius, and BlockFi. Rumors on Twitter also started spreading the news that KuCoin was planning to halt withdrawals.

KuCoin CEO says the exchange is still strong

KuCoin, one of the largest crypto social trading platforms, found itself trending on crypto Twitter after several people urged investors to withdraw their funds from the exchange due to a looming ban on withdrawals. However, the CEO of the exchange, Johnny Lyu, has quickly dismissed these claims.

Some of the popular people in the crypto community, such as blockchain analyst @otteroooo and trader @KongBTC, advised their followers to withdraw funds from KuCoin, claiming that the exchange would soon follow other exchanges such as Celsius and BlockFi, which have already halted withdrawals.

The rumors also said KuCoin had been affected by the ongoing market conditions. The collapse of Terra LUNA and Three Arrows Capital reportedly led to the exchange suffering, as it had significant exposure to the fallen companies. However, Lyu has dismissed these claims saying that the company was not exposed to LUNA, 3AC, and Babel.

Lyu released a Twitter thread dismissing these claims saying, “No ‘immense suffer’ from any ‘coin collapse,’ no plan to halt withdrawal, everything on KuCoin is operating well.” He also said that the company had a strong financial position that enabled it to meet its obligations.

KuCoin’s strong financial position

The KuCoin CEO disclosed that the exchange recently closed a $150 million funding that increased the company’s valuation to $10 billion in May 2022. He further noted that the company had several open positions and was still hiring staff, contrary to exchanges such as Coinbase, Gemini, and Crypto.com that have laid off staff because of the ongoing market conditions.

Lyu further dismissed the rumors of insolvency and shared a review report for the first half of 2022. The report detailed KuCoin’s operations, proving that the exchange was operating normally and would not shut down its services.

The CEO has also issued s warning to the people spreading these rumors against the exchange and creating panic among the exchange’s users. “For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions. Do not FUD, BUIDL,” Lyu added.

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