KuCoin utility token KCS was in a slow state in recent days as the cryptocurrency exchange is facing a flood insolvency rumors.
Tuesday’s CoinMarketCap statistics reveals that the price of KSC has decreased by 17.35 percent over the previous week, trading at $8.74 at the time of writing.
According to certain sources, KuCoin had exposure to Terra’s doomed LUNA and UST cryptocurrencies as well as insolvent crypto hedge firm Three Arrows Capital.
KuCoin is the fifth largest cryptocurrency exchange in the world, with a 24-hour trading volume of $927 million. CoinMarketCap ranks KCS 49th among the most valued digital assets with an estimated market capitalization of $858million.
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KCS Gains 14% In Value For This Month
KCS has kept weakening this month despite its founder’s assurances that the cryptocurrency exchange will not halt withdrawals in the manner of many of its competitors.
KCS lost 14% of its value this month due to investors being scared by global macroeconomic changes and weakness in balance sheets at other major crypto exchanges. This is in response to a series of job losses and operational problems caused by insolvency for a handful of large clients.
Last week, the exchange’s native token lost roughly a quarter of its value, with more than half of that decline occurring on Saturday alone. Since the end of May, KCS has lost more than half of its value and is down more than 60 percent from its December 2017 record levels.
Source: TradingView.com| Source: TradingView.com
KuCoin Is Fine, CEO Says
KuCoin CEO Johnny Lyu responded to speculations of the company’s demise by clarifying it had no exposure to Three Arrows, LUNA, or Babel.
Pay attention to FUDs
These rumors are spreading, though we don’t know who or what they intend to do. #KuCoinDoes not receive any exposure to LUNA 3AC, Babel or LUNA.
No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, everything on KuCoin is operating well.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
Lyu tweeted:
“No ‘immense suffer’ from any ‘coin collapse’, no plan to halt withdrawal, everything on KuCoin is operating well,” adding that the company reserves the right to carry out legal actions against those spreading false rumors.
The company received $150 million of new capital in May last year during a round of funding that valued it at $10 billion.
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KuCoin secured $150m in cash from a financing round valued at $10billion. Sources say KuCoin went on an unprecedented hiring spree and added features to its website.
Market experts say that the FUD, fear, uncertainty and doubt, has affected KCS.
Until uncertainties around KuCoin’s balance sheet is resolved, it is possible that KSC may not be able to initiate a strong comeback, even if the wider crypto industry can.
Featured image taken from FundsNet. Chart taken from TradingView.com