The price of KuCoin (KCS), the original token for KuCoin’s cryptocurrency exchange, has fallen in the last seven days following insolvency rumors. At the time of writing, KuCoin was down 17.34% last week, trading at $ 8.75. according to CoinMarketCap.
KuCoin is the world’s fifth largest cryptocurrency exchange, with a 24-hour trading volume of $ 928 million. Its KCS token is the No. 49 digital asset on CMC, with a market value of $ 858 million.
But earlier this week, rumors began to spread on Crypto Twitter that KuCoin would stop withdrawing because it was about to break down. KuCoin CEO Johnny Lyu responded by saying that the company had no exposure to LUNA, 3AC or Babel.
“No ‘huge suffering’ from any ‘coin collapse’, no plan to stop withdrawals, everything on KuCoin works well,” Lyu so on Twitter, adding that “KuCoin reserves the right to take legal action” against those who spread false rumors.
Lyu referred to three recent meltdowns in the cryptocurrency ecosystem: Luna, the governing symbol of the Terra ecosystem, which saw tens of billions of dollars in value wiped out last month in spectacular crash of the Terra ecosystem; 3AC or Three Arrows Capital, a hedge fund like archived for bankruptcy last week; and the crypto-lending platform Babel Finance, as last month suspended redemptions and withdrawals.
All three are examples of a problem with liquidity in the crypto ecosystem right now as digital assets have plummeted in price over bear market.
Lyu also responded directly to someone who asked if KuCoin had exposure to Celsius, which is reportedly near bankruptcyand said: “no. ”
In the midst of the cryptocurrency that accelerated the first week of May, what began as rumors on Crypto Twitter have largely proved to be true, including rumors of the solvency of Celsius, Three Arrows Capital, BlockFi and Celsius. Lyu insists his exchange is doing well: “We are one of the few platforms still hiring,” he said, adding that KuCoin was “more active in the bear market” and launched new features.
KCS is actually up the last 24 hours, as are most cryptocurrencies on Monday. But it still has the worst performance in seven days of the major digital assets of the past week.
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