KuCoin Executive Hits Back Against ‘Cheap Rumors’ After FTX Collapse

• KuCoin Executive Hits Back Against ‘Cheap Rumors’ After FTX Collapse

These rumors have fueled a frenzy of fear, uncertainty, and doubt (FUD) throughout the exchange and the bitcoin sector as a whole. FUD refers to the unpleasant emotions and feelings that occur among investors and traders. It can occasionally cloud their judgment or cause them to change their minds about a certain item or market. Due to inaccurate rumors and conjecture, cryptocurrency exchanges are especially subject to FUD.

Fear of a prospective government ban or restriction is one of the most prominent rumors contributing to FUD in cryptocurrency. Governments around the world have expressed caution about cryptocurrencies due to their decentralized and unregulated character. In reaction, speculations of future crypto bans or limits have driven investors to panic and liquidate their holdings, causing the market to hemorrhage in some situations.

Another prevalent myth is the fear of a hack or security breach. Because of the massive sums of money stored in their wallets, cryptocurrency exchanges are a major target for hackers. A security breach can result in the loss of investor funds and permanently harm the reputation of the exchange. Reports of potential security breaches might induce investors and traders to panic, resulting in a bitcoin sell-off.

Furthermore, speculations of cryptocurrency price manipulation have led to FUD. Several investors and dealers believe that market manipulation is common in the cryptocurrency business, resulting in erroneous price swings and a lack of trust in the market.

The collapse of FTX, the now-infamous crypto exchange and trading platform, triggered a chain reaction among the crypto industry. FTX was linked to numerous other exchanges and investment firms.

The failure of FTX fueled speculation about other exchanges going bankrupt. KuCoin was one such exchange that was investigated. Despite this, the exchange and its management are unafraid to challenge these myths.

Mete Ulmet Elmas, KuCoin’s Head of Business Development, talked exclusively to BeInCrypto to refute these accusations. He dismissed the rumors and FUD around the exchange’s impending insolvency as “cheap,” and disputed that they were true.

“KuCoin has been one of the exchanges that has been targeted by rumors the most of the time in the last several months,” he said. Yet all of those rumors have already been proven false. Rumors, I’d say, are cheap; we take them seriously, but we’re not terrified of them.”

Elmas noted regular proof of reserve audits as evidence of KuCoin’s transparency and financial stability, among other things. Proof of reserve reporting is a system that allows a cryptocurrency exchange to offer evidence of its reserves and financial health.

This usually entails issuing a report that verifies the quantity of cryptocurrencies in the company’s wallets and compares it to its liabilities.

KuCoin’s proof of reserve reports are prepared by Mazars, a reputable worldwide audit agency. According to the most recent data, KuCoin’s BTC, ETH, USDT, and USDC reserves are overcollateralized.