Rumours are spreading across the crypto market that a popular crypto exchange, KuCoin, is holding large quantities of Wrapped LUNA cryptocurrency or wLuna. The rumor also included that the crypto exchange had not offered any withdrawal or deposit services for tokens of wLuna to crypto investors in the highly volatile cryptocurrency market. Meanwhile, the CEO of KuCoin, Johnny Lyu, has declined the ongoing rumour and claimed that the crypto exchange does not have any exposure to wLuna or LUNA tokens post-crash in the cryptocurrency market.
The crypto exchange, KuCoin, has announced that the platform has stopped transactions of wLuna since May 2022 after the drastic crash of the Terra cryptocurrency. Johnny Lyu explained that KuCoin was known for offering wLuna to the cryptocurrency market from January 2021 to May 2022. He also claimed that funds are not owned by the crypto exchange, almost all funds belong to crypto investors. Thus, it can be evident that KuCoin does not have the official holding of the wLuna cryptocurrency.
The crypto exchange announced in May 2022 that all existing subscriptions would be automatically redeemed and credited to all users' accounts respectively for the halt in all LUNA-related products amidst the crypto crash.
Johnny Lyu is very disturbed by these rumors going on with KuCoin where he suspects that the extreme cryptocurrency market conditions have incited suspicion towards the crypto exchange and KuCoin is fully aware of it. To mitigate these unwanted situations, Johnny Lyu launched an anti-FUD fund for KuCoin in July 2022. He has also asserted that KuCoin as a crypto exchange will stay strong in the highly volatile cryptocurrency market. There will be no halt in withdrawing, depositing, and transacting any cryptocurrency for all crypto investors. KuCoin is not ready to follow other crypto exchanges to halt withdrawals in the nearby future because it has a strong financial position — nabbed US$150 million worth of funding in May 2022 with a total valuation of US$10 billion.
That being said, Johnny Lyu has issued a warning to the crypto market for spreading the rumors and the crypto exchange has reserved the right to take legal actions. The crypto exchange is scared of its users getting panicked and the pressure of withdrawing will dawn upon them. Johnny Lyu needs to clear the rumors because he does not want these rumors to affect the crypto exchange and its functionalities in the cryptocurrency market. Crypto investors, who are using KuCoin, can continue their services on this crypto exchange platform without any fear to incur a loss.
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