A number of rumors have sprung up on Twitter over the past few days and are spreading like wildfire. It was stated that crypto exchange KuCoin would be in deep trouble and that bankruptcy was looming. However, KuCoin CEO Johnny Lyu was quick to dismiss these rumours.
KuCoin in trouble?
A number of prominent crypto-Twitterers issued a serious warning to their followers. Followers were urged to withdraw their cryptocurrencies and funds from KuCoin as soon as possible, as the exchange was said to be on the verge of collapse. In addition, KuCoin would very soon stop withdrawing 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
The problems with KuCoin are said to have something to do with the demise of Terra (LUNA) and the 3AC hedge fund† The exchange is said to have had serious exposure to these projects and have been hit hard for that reason.
Johnny Lyu denies everything
KuCoin CEO Johnny Lyu didn’t have to wait long and after a few hours came up with a response on Twitter. According to him, the rumors that KuCoin is in trouble are nothing more than fear, uncertainty & doubt (FUD). He states that KuCoin has not been, or has not been, exposed to LUNA, 3AC, Babel and other problematic projects.
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
“Be aware of FUDs! I’m not sure who is spreading these rumors, and what their intentions are, but #KuCoin has no exposure whatsoever to LUNA, 3AC, Babel, etc. No “immense burden” of a “coin collapse”, no plan to stop withdrawals, everything on KuCoin works well.”
The KuCoin CEO says that everything is going exactly according to plan for the exchange. For example, it recently again raised at least $150 million, valuing it at more than $10 billion just a month ago. In addition, unlike some other crypto exchanges, KuCoin is quietly continuing to hire new staff.