Kucoin CEO Denies Halting Withdrawals Rumors, Threatens Legal Action
With over 700 trading assets, KuCoin has quickly established itself as one of the top cryptocurrency exchanges in the highly volatile world of cryptocurrencies.
This is despite the fact that there are already hundreds of exchanges in operation.
KuCoin has some ambitious goals for this year, and the exchange’s CEO Johnny Lyu is optimistic that the future contains an uptrend in the market, despite the fact that the global cryptocurrency markets are now being hammered by crashes.
What we are going to learn?
Johnny Lyu Denying Halting Withdrawal Rumors
The withdrawals from KuCoin may be stopped, according to some rumors in CT. There has been more than 25000 Tweets against Kucoin, spreading negative things about this crypto exchange.
KuCoin, has categorically denied allegations that they would stop allowing withdrawals from users on their site due to significant losses brought on by the LUNA collapse.
KuCoin users were given confidence by Lyu, who revealed that the cryptocurrency exchange had just completed a $150 million fundraising effort, increasing the company’s valuation to $10 billion by May 2022.
Additionally, he noted that despite the fact that many cryptocurrency exchanges had announced layoffs, KuCoin has continued to expand by adding additional employees despite the challenging market conditions.
Panic Among Investors and Traders of Kucoin
After what happened with Luna, Celsius, and Voyager, crypto holders are now in panic. For anyone who has lost a lot of money in exchanges halting their operations, users can’t afford to lose more of their assets in Kucoin or any other exchange.
Action against Fudders
Lyu has also vowed to file lawsuits against individuals who are spreading misinformation and defaming the deal.
Being open and honest has always been one of our guiding principles, he wrote. Our 2022 H1 review report, which will be released soon, will provide you with further information about how we operate. KuCoin retains the right to pursue legal action against FUDers who knowingly disseminate unverified information.
Hack against KuCoin
KuCoin is one of the biggest cryptocurrency exchanges, with over 750 coins available for trading with minimal trading fees.
On September 25, 2020, hackers broke into the exchange and stole more than $275 million worth of cryptocurrencies, although almost all of the coins were later recovered.
This was one of the biggest exchange heists. The ability to service customers in the United States is not authorized by KuCoin.
What effect did the cryptocurrency crash have on KuCoin?
It’s a two-edged sword dealing with the markets.
When it comes to user attitude, transaction willingness, etc., a strong market can occasionally be a booster, which can increase the effectiveness of our platform efforts.
However, given the state of the market, some users may be less likely to trade frequently, and this is all staged, as will be the readiness of new users to join.
Although the platform must benefit from the market’s upward trend, it will also make significant investments in the innovation-related departments, particularly Web-3.0, Metaverse environments, and other digital opportunities, in order to create a platform that is more competitive and offers users a wide range of products and services.
Their long-term strategies cannot be impacted by short-term market fluctuations.
How secure is the KuCoin exchange for investor assets?
The platform at KuCoin makes sure that the exchange is secure for trade, and they are constantly on the lookout for security and cyber threats.
With KuCoin, you can trade with assurance because you know your digital assets are secure on the exchange. They use a variety of degrees of security, including dynamic multi-factor authentication, industry-standard multilayer encryption, and micro-withdrawal wallets.
On its help center, KuCoin provides live chat and online ticketing for customer support around-the-clock. The support team is incredibly accommodating and kind.
A total of 23 local communities have been developed by KuCoin across Europe, SEA, and other locations, offering users highly localized service and support.
Has Kucoin Actually Halted Crypto Withdrawals?
Post the rumors, we wanted to see if users were able to withdraw their assets. We set some withdrawal orders for some of our crypto. First with Solana, followed by USDC, and then NAKA coins. Solana is still pending withdrawal. USDC took longer than usual to withdraw (more than 2 hours), wheres with small altcoins like NAKAMOTO, the withdrawals were very quick. It has been more than 6 hours now, and Solana withdrawal is still pending on Kucoin.
I also had withdrawn Solana earlier from Kucoin which took less than 5 minutes for successful withdrawal. I am not sure what is the issue this time. However, I will keep you updated.
Is my Money Safe with Kucoin?
As of now there is no confirmation that Kucoin is going insolvent, or Kucoin going bankrupt. In the bull season, Kucoin, I think was among the top 3 crypto exchanges that I used to trade cryptocurrencies. I was really happy to see the growth of Kucoin. I have been trading on this exchange since the inception.
Ofcourse, when everyone rushes to withdraw from any exchange, there is an added pressure on the exchange. But if they already have real funds, I see no reason for them going bankrupt.
They did some real good business in 2021-22 crypto bull cycle.
As of now, these are just rumors.
However, it is not safe to keep your funds in any exchange for long time. Majority of your crypto should be with you holding the private keys.
Kucoin, so far, have been one of the safest crypto exchanges this industry has ever produced.
However, for the users of Kucoin, Kucoin CEO should consider being transparent about how safe their exchange is and why users need not worry.
It will be a testing time for Johnny Lyu and the exchange.
What should you as an investor do?
Best is to keep your assets with you as of now. Once things settle, one can always go back to the exchange and start trading normally. If you have e ledger, you can shift your crypto to your ledger. If not, you can create an account with Trust wallet and move your coins there. Remember to keep your RECOVERY PHRASE safely.
If you are facing some withdrawal issues with any of the cryptocurrencies, drop a comment below.