Crypto News- Following damning charges from the U.S. Department of Justice and the Commodity Futures Trading Commission, KuCoin finds itself in dire straits. According to insights from blockchain research firm Kaiko, the exchange’s market share has plummeted by half, with daily trading volume nosediving by a staggering 75% – from $2 billion to a mere $520 million.
KuCoin’s Market Share Plummets by Half Following DOJ Indictment and CFTC Charges, 1.2 Billion Dollars Outflows
The repercussions of these legal blows were swift and brutal. An onslaught of users rushed to withdraw their assets from KuCoin, causing withdrawal delays and exacerbating the exchange’s woes. Despite KuCoin’s attempts to mollify users with an $8.95 million airdrop program, the damage was done. Market share shrunk from 6.5% to a dismal 3%.
KuCoin Exodus: Investors Flee to Safer Havens Amid Legal Turmoil
The exodus from KuCoin has been palpable. Onchain data reveals a mass migration of funds to perceived safer havens like Coinbase, Binance, and OKX, as well as self-custodial wallets. Even market makers are abandoning ship, further destabilizing KuCoin’s position in the market.
But the bleeding doesn’t stop there. Over $1.2 billion has flowed out of KuCoin wallets since the charges hit, with a staggering $600 million fleeing in a single day. Mainly consisting of ether and USDT, these outflows paint a grim picture of KuCoin’s current predicament.
KuCoin Under Fire: Allegations of Money Laundering Rock Investor Confidence
The allegations from the DOJ and CFTC paint a damning picture of KuCoin’s operations, accusing the exchange of facilitating money laundering to the tune of $9 billion. Despite KuCoin’s reassurances of compliance and safety, the accusations have shaken investor confidence to its core.
In the wake of these charges, KuCoin finds itself at a crossroads. While the exchange maintains that it operates within legal boundaries, the road ahead appears fraught with challenges. As Kaiko analysts caution, the recent turmoil may pose a significant threat to KuCoin’s future viability in the ever-evolving crypto landscape.
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