KuCoin Reserves Dip As Outflows Reach $118 mn
This week, leading cryptocurrency exchange KuCoin reported declines in key asset reserves such as bitcoin, ether, and USDT stablecoins. According to the most recent proof of reserves certificate, holdings fell 3-4% from August to September as some users withdrew funds from the platform.
The trend was confirmed by data from analytics provider Defillama, which recorded $118 million in net outflows from KuCoin over the past month. Customers’ confidence is dwindling as a result of market volatility and shifting regulatory landscapes.
KuCoin’s reserve certificate showed that its bitcoin stockpile fell by about 4% in September, to just over 17,600 BTC. Ether holdings decreased by 3% to approximately 148,000 ETH, while USDT reserves decreased by 4% to approximately $837 million.
Cryptocurrency markets experienced extreme volatility in 2022, leading to skittish investors moving assets to stablecoins or external wallets. Increased global crypto exchange regulation has spooked users, posing risks to exchange viability and market stability. Exchanges like KuCoin must take proactive steps to strengthen confidence, such as regular attestations through reserve certificates, to demonstrate solvency.
(With inputs from Shikha Singh)
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