Kucoin Can’t Meet User’s Withdrawal Needs, It True?

Kucoin recently encountered a series of FUDs related to liquidity problems and “opacity” in business activities. Most recently, the most popular exchange has “inside” information that it is not able to pay users who want to withdraw.

Witness from “inside” Kucoin

According to information from a familiar twitter account named “otteroooo”, which has released text message proof of a KuCoin employee, confirming that the exchange has really “played all the time” on LUNA and lost up to 500 million USD. This person is currently leaving to avoid dealing with the troubles from the exchange.

This account also gave a lot of evidence to prove that the exchange really has liquidity problems because when LUNA/UST collapsed, the exchange holding the most wLUNA at this time was none other than KuCoin, with nearly 27% of the total wLUNA supply circulating in the market.

Rumors are corrected

Very quickly, KuCoin CEO Johnny Lyu posted a blog on the exchange’s official website to explain the incident. He said the recent FUDs created by otteroooo are becoming ridiculous and every time otteroooo contacted the CEO, he tried his best to answer this account’s question.

However, even when KuCoin explained everything, otteroooo ignored the facts and continued to intentionally spread his FUD. While other users openly admit their assumptions are wrong, otteroooo is still stubborn

In short, most of the conversation between Johnny Lyu and otteroooo revolved around wLUNA. This account asked if Kucoin was exposed to wLUNA, he said “NO”.

Besides, the CEO Johnny Lyu also stated that as an exchange, most of the funds in the KuCoin wallet do not belong to this exchange, they belong to the users. Therefore, it is KuCoin’s responsibility to secure assets and ensure users can always withdraw in full whenever they want. Having a wallet that holds a lot of wLUNA does not necessarily mean that the exchange is unilaterally holding a lot of these tokens.

As for the KuCoin employee’s accusation, he asserted that this action has no meaning for this exchange because otteroooo cannot prove that this person is a former this exchange employee. Such fake photos can be easily created.

Finally, the CEO Johnny Lyu revealed that he himself also noticed that some stakeholders in the market are accusing the opposite otteroooo of trying to profit from FUD spreading or even blackmailing some platforms.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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