KuCoin utility token KCS has been in a sluggish situation in the previous couple of days, as the most important cryptocurrency trade faces a flood of insolvency rumors.
Tuesday’s CoinMarketCap statistics reveals that the worth of KSC has decreased by 17.35 p.c over the earlier week, buying and selling at $8.74 on the time of writing.
According to sure sources, KuCoin had publicity to Terra’s doomed LUNA and UST cryptocurrencies in addition to bancrupt crypto hedge agency Three Arrows Capital.
KuCoin is the fifth largest cryptocurrency trade on the planet, with a 24-hour buying and selling quantity of $927 million. KCS is the forty ninth most dear digital asset in accordance with CoinMarketCap, with a market valuation of $858 million.
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KCS Sheds 14% Of Value This Month
KCS has saved weakening this month regardless of its founder’s assurances that the cryptocurrency trade is not going to halt withdrawals within the method of a lot of its opponents.
KCS has misplaced 14 p.c of its worth to this point this month, as buyers have been frightened by modifications in world macroeconomic circumstances and by weak spot within the stability sheets of different main crypto exchanges following a wave of job cuts and operational breakdowns attributable to the insolvency of some giant purchasers.
Last week, the trade’s native token misplaced roughly 1 / 4 of its worth, with greater than half of that decline occurring on Saturday alone. Since the top of May, KCS has misplaced greater than half of its worth and is down greater than 60 p.c from its December 2017 report ranges.
Crypto complete market cap at $897 billion on the day by day chart | Source: TradingView.com
KuCoin Is Fine, CEO Says
KuCoin CEO Johnny Lyu responded to speculations of the corporate’s demise by clarifying it had no publicity to Three Arrows, LUNA, or Babel.
Be conscious of FUDs!
Not certain who’s spreading these sheer rumors, and what their intentions are, however #KuCoin doesn’t have any publicity to LUNA, 3AC, Babel, and so on.
No “immense suffer” from any “coin collapse”, no plan to halt withdrawal, every little thing on KuCoin is working effectively.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
On Twitter, Lyu stated:
“No ‘immense suffer’ from any ‘coin collapse’, no plan to halt withdrawal, everything on KuCoin is operating well,” including that the corporate reserves the precise to hold out authorized actions towards these spreading false rumors.
In May of final yr, the corporate secured $150 million in new money throughout a funding spherical that valued the trade at $10 billion.
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In May of final yr, the corporate secured $150 million in new money throughout a funding spherical that valued the trade at $10 billion. KuCoin launched into a hiring binge and added new options to its website, sources stated.
Nonetheless, in accordance with market consultants, the related FUD (worry, uncertainty, and doubt) has had an impact on KCS.
Until uncertainties round KuCoin’s stability sheet is resolved, it’s attainable that KSC could not be capable of provoke a robust comeback, even when the broader crypto business can.
Featured picture from FundsNet, chart from TradingView.com