KuCoin utility token KCS has been in a shambles over the past few days, as the major cryptocurrency exchange faces a flood of bankruptcy rumours.
Tuesday’s CoinMarketCap data shows the price of KSC is down 17.35 percent over the past week, trading at $8.74 at the time of writing.
According to some sources, KuCoin was in contact with Terra’s ruined LUNA and UST cryptocurrencies as well as bankrupt 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. According to CoinMarketCap, KCS is the 49th most valuable digital asset, with a market cap of $858 million.
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KCS slashed 14% of the value this month
KCS has been underwhelming this month, despite assurances from its founder that the cryptocurrency exchange will not stop withdrawals the way many of its competitors do.
KCS has lost 14% of its value so far this month, as investors fear changes in global macroeconomic conditions and weakness in the balance sheets of other major crypto exchanges, following a wave of operational breakdowns due to job cuts and bankruptcies. . Some big customers.
Last week, the exchange’s native token lost nearly a quarter of its value, with more than half of that falling on Saturday alone. Since late May, the KCS has lost more than half of its value and is down more than 60 percent from its December 2017 record lows.
Crypto total market cap at $897 billion on the daily chart | Source: TradingView.com
KuCoin is fine, says CEO
KuCoin CEO Johnny Lew responded to speculation about the company’s demise, clarifying that it had no contact with Three Arrows, Luna or Babel.
Be aware of FUDs!
Don’t know who is spreading these sheer rumours, and what are their intentions, but #kucoin No exposure to LUNA, 3AC, Babel, etc.
There is no “overwhelming suffering” from any “coin collapse”, no plans to stop withdrawals, everything is going well on KuCoin.
— johnny_kucoin (@lyu_johnny) 2 July 2022
On Twitter, Liu said:
“There is no ‘too much suffering’ from any ‘coin collapse’, no plans to stop withdrawals, everything is going well on KuCoin,” it said, adding that the company is against those spreading false rumours. reserves the right to take legal action.
In May of last year, the company secured $150 million in new cash during a funding round that was valued at $10 billion.
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In May of last year, the company secured $150 million in new cash during a funding round that was valued at $10 billion. Sources said that KuCoin started the hiring binge and added new features to its site.
Nonetheless, according to market experts, the associated FUD (fear, uncertainty and doubt) has had an impact on KCS.
Until the uncertainties about KuCoin’s balance sheet are resolved, it is possible that KSC may not be able to launch a strong comeback, even if the broader crypto industry could.
Featured image from FundsNet, chart from TradingView.com