CEO of Seychelles-based Crypto exchange KuCoin has urged users to not fall for rumors of halting withdrawals on their platform or that it is immensely suffering from ‘coin collapse’ in reference to the LUNA blowup.
Assuring users that everything is operating well, Johnny Lyu, Co-founder of KuCoin wrote:
“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.”
In the following thread, Lyu attempted to allay concerns by pointing out that the crypto exchange recently secured $150 million in a pre-series B funding round, bringing its valuation to $10 billion.
Next, he highlighted that the firm has managed to stand strong amidst the wave of mass lay-offs and is one of the few platforms that are still hiring, even in these unfavorable market conditions.
Besides that, Lye wrote, ” We are more active in the bear market, launching new features like OCO order, fiat pair.”
Further, the chief exec stressed that it strives for transparency as it is one of its key principles and will be soon publishing its 2022 H1 review report to inform users of its operations.
KuCoin CEO- “Don’t FUD, BUIDL”
Lye also threatened lawsuits against those who deliberately spread unverified information saying, “KuCoin reserves the right to take legal actions”. The CEO then concluded the post, with the quote “Don’t FUD, BUIDL.”
A few days ago, the trading platform was in the news after the Canadian Regulator Ontario Securities Commission [OSC] banned the exchange from offering its services in the province, claiming it operated an unregistered digital asset trading platform.
That said, the fears currently engulfing the crypto scene come amidst the ongoing market-wide correction that has crippled many major industry players exposing their liquidity crises, for instance, BlockFi and most recently 3AC [Three Arrows Capital].
On top of that, Sam Bankman-Fried, CEO of crypto exchange FTX urged investors to be cautious after making a stunning claim that many crypto exchanges are secretly under deep water implying those firms are facing a liquidity crunch and it is only a matter of time before they publicly declare.