The KuCoin CEO denies rumors that the exchange is insolvent, and traders have been able to withdraw – but is more crypto contagion coming? That’s what some reputable crypto Twitter accounts have been warning of over the past weeks.
Some of the most respected traders such as @GCRClassic – who correctly predicted cryptocurrency was at the top of its cycle in Nov 2021, then also shorted Terra (LUNA) from around $100 before its crash – and @Pentosh1 – who sold his $2.5 million in Bitcoin above $60,000 – have posted warnings that the ‘your funds are not safe on the vast majority of exchanges and protocols’.
Source – Tweet link
Pentoshi noted that FTX CEO Sam Bankman-Fried (known as SBF) has also has said some exchanges are insolvent, and that crypto contagion has spread beyond Terraform Labs, Three Arrows Capital, and crypto lending platforms like Celsius, Voyager, Finblox, CoinFLEX and others.
Another prominent crypto Twitter account that investigates ‘anything that smells fishy’ is @otteroooo who told his followers to ‘withdraw from KuCoin right now’.
Source – Tweet link
On July 1st the CEO of Bitcoin Magazine @DavidFBailey posted that ‘the next round of contagion is about to drop’, and recommended withdrawing Bitcoin from crypto exchanges before a liquidity crisis.
Some well-known crypto Twitter accounts have for now however reported that they were able to successfully withdraw from KuCoin exchange – with no delays or restrictions.
Source – Tweet link
The Kucoin CEO @lyu_johnny has replied that these rumors are ‘FUD’ (fear, uncertainty and doubt) and that KuCoin did not have ‘any exposure to LUNA, 3AC, Babel Finance, etc.’
Johnny KuCoin also stated there are no plans to halt withdrawals and that KuCoin exchange was valued at $10 billion as of May after completing a $150m fundraising round.
Source – Tweet link
He added that being transparent is one of the KuCoin company’s key principles and the exchange platform will publish a 2022 review report for investors to ‘know more about our operations’.
Another notable crypto sleuth account @zachxbt replied to that tweet thread however claiming KuCoin’s management is ‘incompetent’ and ‘enables fraud’ on their exchange.
KuCoin is favored by many active day traders e.g. those in the United States as it requires little KYC and has derivatives pairs – for some traders it is one of the only options for margin trading.
For those taking a ‘better safe than sorry’ approach and looking for KuCoin alternatives however, the general consensus on Twitter is that the following crypto exchanges are the safest bets given the current market conditions and possible contagion:
eToro is regulated by top-tier regulatory bodies the FCA, ASIC and CySEC, operating the longest since 2007 (launched as a stocks and forex broker before crypto existed) and is open to the USA.
Also see our list of the best crypto traders to follow, to help monitor the situation and keep up to date with the latest crypto contagion news.
eToro – Regulated Crypto Platform
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This article was written for Business 2 Community by Matt Williams.
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Hailing from Northampton UK, Matt has a keen interest in stocks and crypto, and ways to earn passive income online to achieve financial freedom.… View full profile ›
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