Crypto exchange platform KuCoin has been catching headlines after a crypto Twitter’s sub-community began warning investors about an incoming ban on funds withdrawals. However, Johnny Lyu, the CEO of the exchange, quickly dismissed the rumors.
Twitter has been steamed up recently when prominent names in the industry including crypto trader @KongBTC and Blockchain investigator @otteroooo started warning their followers to withdraw all their funds from the exchange while stating that KuCoin might soon restrict users from withdrawing their funds.
WITHDRAW FROM KUCOIN RIGHT NOW
Not a drill
no time for thread
like and retweet to spread the message
otter hardly wrong in such matters
— otteroooo (@otteroooo) July 2, 2022
Several big names linked the rumor to Terra’s and 3AC collapse which led to “immense fear” for Kucoin owing to high exposure to the plummeted tokens.
Lyu underlined the company’s solid position by revealing a recent $150 million fundraising, which set the company’s worth at $10 billion in May 2022, while dispelling the alleged rumors via posting a Twitter thread.
Be aware of FUDs!
Not sure who's spreading these sheer rumors, and what their intentions are, but #KuCoin does not have any exposure to LUNA, 3AC, Babel, etc.
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
Amidst the continued FUD (fear, uncertainty, and doubt), he also mentioned that the company is hiring for a variety of positions and urged investors to use their own best judgment. He assured the investors:
“No “immense suffer” from any “coin collapse,” no plan to halt withdrawal, everything on KuCoin is operating well.”
KuCoin intensifying transparency efforts
Lyu confirmed to provide the company’s 2022 H1 review report with complete details regarding their operations, further separating KuCoin from the insolvency rumors. Finally, he issued a warning to those who claim that the exchange has shut down services and caused investor panic:
“For FUDers who intentionally spread unverified info, KuCoin reserves the right to take legal actions. Don’t FUD, BUIDL.”
Tether’s CTO Paolo Ardoino recently disclosed that hedge funds attempting to short-sell the crypto asset pegged to the US dollar had launched a “coordinated attack” against the stablecoin Tether (USDT).
In addition to mentioning Tether’s recent promise to gradually reduce its exposure to commercial paper, Ardoino noted that the company is working with regulators and has improved its transparency efforts.