KuCoin utility token KCS has been in a sluggish condition in the last few days, as the major cryptocurrency exchange faces a flood of insolvency rumors.
Tuesday’s CoinMarketCap statistics reveals that the price of KSC has decreased by 17.35 percent over the previous week, trading at $8.74 at the time of writing.
According to certain sources, KuCoin had exposure to Terra’s doomed LUNA and UST cryptocurrencies as well as insolvent crypto hedge firm Three Arrows Capital.
KuCoin is the fifth largest cryptocurrency exchange in the world, with a 24-hour trading volume of $927 million. KCS is the 49th most valuable digital asset according to CoinMarketCap, with a market valuation of $858 million.
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KCS Sheds 14% Of Value This Month
KCS has kept weakening this month despite its founder’s assurances that the cryptocurrency exchange will not halt withdrawals in the manner of many of its competitors.
KCS has lost 14 percent of its value so far this month, as investors have been frightened by changes in global macroeconomic conditions and by weakness in the balance sheets of other major crypto exchanges following a wave of job cuts and operational breakdowns caused by the insolvency of a few large clients.
Last week, the exchange’s native token lost roughly a quarter of its value, with more than half of that decline occurring on Saturday alone. Since the end of May, KCS has lost more than half of its value and is down more than 60 percent from its December 2017 record levels.
Crypto total market cap at $897 billion on the daily chart | Source: TradingView.com
KuCoin Is Fine, CEO Says
KuCoin CEO Johnny Lyu responded to speculations of the company’s demise by clarifying it had no exposure to Three Arrows, LUNA, or Babel.
On Twitter, Lyu said:
“No ‘immense suffer’ from any ‘coin collapse’, no plan to halt withdrawal, everything on KuCoin is operating well,” adding that the company reserves the right to carry out legal actions against those spreading false rumors.
In May of last year, the company secured $150 million in new cash during a funding round that valued the exchange at $10 billion.
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In May of last year, the company secured $150 million in new cash during a funding round that valued the exchange at $10 billion. KuCoin embarked on a hiring binge and added new features to its site, sources said.
Nonetheless, according to market experts, the associated FUD (fear, uncertainty, and doubt) has had an effect on KCS.
Until uncertainties around KuCoin’s balance sheet is resolved, it is possible that KSC may not be able to initiate a strong comeback, even if the wider crypto industry can.
Featured image from FundsNet, chart from TradingView.com