- KuCoin exchange went under temporary maintenance unannounced, causing FUD.
- On-chain data claim KuCoin was the most withdrawn exchange, even more than the embattled FTX.
- Further data inspection showed the exchange only swapped $300 million USDT between ETH and TRX networks.
KuCoin, one of the major crypto exchanges, went under maintenance unannounced, throwing the crypto community into another round of fear, uncertainty, and doubt.
Given the current bleeding cycle of the crypto market, some crypto enthusiasts who trade on KuCoin speculate about a possible shortage of funds in the crypto exchange. A crypto fan group on, Lookonchain partly confirmed this suspicion based on available data from crypto analytic firm Nansen.
Lookonchain noted in a short Twitter thread that KuCoin witnessed an excessive stablecoin outflow of over $235 million in the last seven days. Nansen’s data further proved that KuCoin appears to be the most withdrawn exchange, even more than the embattled FTX.
Some of our fans in the telegram group are worried about #Kucoin's shortage of funds.We analyzed the stablecoins hold by #Kucoin and found that in the past 7 days, there were not too many stablecoins flowing out from #Kucoin.1.A short thread.— Lookonchain (@lookonchain) November 9, 2022
The supposed heavy withdrawal accounts for the bulk of the suspicion. However, upon further inspection of on-chain data, it became clear that the exchange only moved $300 million worth of USDT from the Ethereum network to the Tron blockchain.
Alicia Schulhof, KuCoin’s managing director, expressed contempt at the misinformation shared about the exchange in the crypto community.
I'm honestly done with misinformation and FUD on this:– Nansen shows KuCoin is the most withdrawed cex.(Yes, MORE than FTX's)– While in fact its a simple swap of USDT between networks ETH->TRON@ASvanevik KuCoin is SAFU, pls fix. pic.twitter.com/1nBjS4FFWs— KuCoin Alicia (@goaliciak) November 9, 2022
The recent events between significant crypto exchanges like Binance and FTX may account for the reason crypto enthusiasts rapidly raise the alarm upon suspecting signs of danger in web3 firms.
FTX, previously the second-largest crypto exchange, is now acquired by Binance after it became clear that the business was battling a liquidity crisis. FTX’s native token, FTT, took a heavy blow, free-falling from $21.20 to $2.51 in the last 24 hours, representing over 88% loss.
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