KuCoin CEO Johnny Lyu has brushed off rumours about the company’s insolvency saying that everything on KuCoin is operating well. There had been speculations last week on Twitter about the firm’s financial wellbeing. One user, in particular Otteroooo, urged customers to withdraw all their funds immediately.
Otterooo caught attention as it had urged users to leave Celsius last month. This pseudonymous analyst attributed its claims to Miles Deutscher that KuCoin was vulnerable due to TerraLUNA’s collapse. On Friday, Deutscher said KuCoin could be ceasing withdrawals in the near future. He claimed that the firm had suffered immensely from the LUNA collapse. Deutscher said it’s better to be safe than sorry given recent events.
Rejecting the rumours, Lyu cautioned customers to be aware of FUDs. He said KuCoin wasn’t sure who was spreading the rumours and what their intentions were. Lyu highlighted that KuCoin did not have any exposure to LUNA, 3AC, and Babel. He said there is no immense suffering from any “coin collapse”. KuCoin doesn’t have plans to halt withdrawal. The executive assured its customers that everything in the firm is operating well.
Lyu went on to inform its customers about KuCoin achievements, in a bid to assure them about the firm’s financial status. He said KuCoin finished $150 million fundraising at a $10 billion valuation in May. The firm is more active in the bear market and has launched new features like OCO orders and fiat orders. Moreover, KuCoin is one of the few platforms that are still hiring.
FatManTerra, a market analyst, pointed out that there was no real evidence to suggest that KuCoin was in any difficulty. He said it was just mere rumours which are stemming from one source of dubious credibility.