Another Major Crypto Exchange Is Raising User Concerns: Details

Nov 10,2022
Another Major Crypto Exchange Is Raising User Concerns: Details

As soon as the break of the FTX capital chain began, another key cryptocurrency exchange began to arouse customers' suspicion. However, the investment analyst of Lookonchain was informed that KuCoin may be in short supply.

In fact, the main reason for customers' concern is that the total amount of stable currencies held by the exchange has decreased by 240 million dollars in the past seven days. Because the total account balance of stable currency held by KuCoin is equal to 1.1 billion US dollars, this is a problem of 20% or more.

However, KuCoin did not acquire assets, but simply converted the Internet. According to Bitfinex Exchange, he exchanged 300 million dollars from Ether to TRC. In addition, in the past seven days, there was no outflow of stable currency from the exchange, even a net inflow of $63 million.

FTX causes damage to the encryption market

When the FTX incident happened, such as the sudden "retreat" of the 240 million US dollars held by KuCoin, it seemed particularly disturbing.

Recall that a leading cryptocurrency exchange and its subsidiaries are likely to fail due to the announcement of the objective facts, and then a large amount of capital flows out.

According to Sam Bankman Fried, the person in charge of FTX, the outflow of assets is so large that by noon, the exchange must have about $6 billion to make up for system loopholes. Because it was unable to raise funds, FTX announced that it had reached a consensus with Binance that this black man and the big yellow cryptocurrency could recover their notorious enemies. The paralysis of FTX caused the total capital of the encryption market to plummet by 100 billion dollars in one day.