KuCoin utility token KCS has been in a sluggish situation in the previous couple of days, as the main cryptocurrency alternate faces a flood of insolvency rumors.
Tuesday’s CoinMarketCap statistics reveals that the value of KSC has decreased by 17.35 p.c over the earlier week, buying and selling at $8.74 on the time of writing.
In line with 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 alternate on the earth, with a 24-hour buying and selling quantity of $927 million. KCS is the forty ninth most useful digital asset based on CoinMarketCap, with a market valuation of $858 million.
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KCS Sheds 14% Of Worth This Month
KCS has stored weakening this month regardless of its founder’s assurances that the cryptocurrency alternate won’t halt withdrawals within the method of lots of its opponents.
KCS has misplaced 14 p.c of its worth to date this month, as buyers have been frightened by adjustments in international macroeconomic circumstances and by weak spot within the steadiness sheets of different main crypto exchanges following a wave of job cuts and operational breakdowns attributable to the insolvency of some giant shoppers.
Final week, the alternate’s native token misplaced roughly 1 / 4 of its worth, with greater than half of that decline occurring on Saturday alone. Because the finish of Might, KCS has misplaced greater than half of its worth and is down greater than 60 p.c from its December 2017 document ranges.
Crypto whole market cap at $897 billion on the day by day chart | Supply: TradingView.com
KuCoin Is Wonderful, 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.
Concentrate on FUDs!
Undecided who’s spreading these sheer rumors, and what their intentions are, however #KuCoin doesn’t have any publicity to LUNA, 3AC, Babel, and so forth.
No “immense undergo” from any “coin collapse”, no plan to halt withdrawal, every part on KuCoin is working nicely.
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
On Twitter, Lyu mentioned:
“No ‘immense undergo’ from any ‘coin collapse’, no plan to halt withdrawal, every part on KuCoin is working nicely,” including that the corporate reserves the fitting to hold out authorized actions in opposition to these spreading false rumors.
In Might of final yr, the corporate secured $150 million in new money throughout a funding spherical that valued the alternate at $10 billion.
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In Might of final yr, the corporate secured $150 million in new money throughout a funding spherical that valued the alternate at $10 billion. KuCoin launched into a hiring binge and added new options to its website, sources mentioned.
Nonetheless, based on market specialists, the related FUD (worry, uncertainty, and doubt) has had an impact on KCS.
Till uncertainties round KuCoin’s steadiness sheet is resolved, it’s potential that KSC could not be capable of provoke a powerful comeback, even when the broader crypto trade can.
Featured picture from FundsNet, chart from TradingView.com