KuCoin CEO Denied Rumors Of Insolvency And Exposure To 3AC

KuCoin CEO denied rumors of insolvency and exposure to There arrows Capital and Luna with Johnny Luy saying that they weren’t exposed to any of it so let’s read more today in our latest cryptocurrency news.

The past few weeks were quite hard for the crypto industry as major market participants experienced huge challenges. One of the biggest centralized lending platforms Celsius still hasn’t unpaused the withdrawals while leading crypto hedge fund Three Arrows Capital filed for bankruptcy. The rumors are running wild on a daily basis and the latest to get in the spotlight was KuCoin.

A Twitter account that gained a lot of traction lately urged users to withdraw funds from Kucoin right away and within hours, the tweet recieved hundreds of retweets as well as thousands of likes. The FTX CEO on the other hand, Sam Bankman Fried argued that there are some exchanges that are already secretly insolvent. Most industry participants started spreading the rumors and thought KuCoin is unlikely to be considered a third-tier exchange as people started speculating.

The Kucoin CEO denied rumors and reiterate that the exchange is opeating as usual and it is hiring more people. He said he is not sure who is spreading the rumors and what the intentions are but the platform doesn’t have exposure to Babel, 3AC, and Luna. You said that the platform is not suffering from chronic collapses and they have no plans to halt withdraws as the exchange is operating well.

The CEO reiterated that they are one of the few platforms that are still hiring while saying that they raised $150 million and a $10 billion valuation just this May. Being transparent is one of the key principles for the platform and Lyu said that they will soon publish the 2022 H1 review report where you can learn more about the exchnage operations.

As recently reported, Kucoin Ventures as the exchange’s VC arm dedicated to crypto investments and the NFT marketplace Windvane decided to join funds and make a “Creators fund” to support new NFT projects according to the reports by Kucoin. The announcement also came from Coinbase earlier of launching an NFT marketplace soon and the Japanese media giant Line releasing such a product dubbed LINE NFT. As the industry attracts investments from financial institutions, most exchanges doubled down on the marketplace to acquire a huge share of the growing NFT market.