KuCoin fought the FUD, but who won?
There have been some rumors floating around the last couple of days regarding KuCoin and whether they were insolvent or not. According to the rumors they were supposed $500M in the red.
What were the rumors
The claims have come from a Twitter handle @otteroooo, and according to it, they were sourced from an anonymous KuCoin insider. The rumor, as far as I can tell, was regarding KuCoin's exposure to $LUNA and $wLUNA, the old tokens that crashed.
This was the best version of both the tweet from otteroooo and the proof I could find. The leak was posted by the KuCoin CEO
KuCoin CEO fires back
The KuCoin CEO has fired back calling this a misinformation campaign and FUD. He has even made public the discussion he and otteroooo had regarding this.
In the response, they show the conversation that took place between both parties. Really not much to show. Johnny_KuCoin, the CEO's twitter handle, basically sent a few links to otteroooo. And at first, otteroooo was not satisfied with the answers that were given. They got sent a few more links, and then they end by saying "ok got it".
The response the CEO also fire back with some allegations of sort as well. Saying he has heard otteroooo might be in it for the money, showing some screenshots of conversations.
What I can't wrap around my head
Why would KuCoin resort to mud-slinging? Would not just a public rebuttal do? The two instances showed, one of them looks like it is from otteroooo´s own twitter thread. And I have personally seen that they have shared such a post earlier, where they showed the conversation of a person trying to buy otteroooo´s twitter. And it might be the very same one. The second one I have no idea if it was previously shared or not, and no idea where it originated.
The second thing that is strange is that otteroooo´s twitter account has gone and done a magic trick, and vanished. And I cant see if this is due to the account being suspended or if it has been disabled by the user.
After trying to discredit otteroooo Johnny_KuCoin says this: "Personally, I think what otteroooo is trying to do is good, alerting people about crypto platforms that may have issues. But I would suggest otteroooo to share information with more genuine source and proof. Otherwise, he is hurting his own credibility."
But I then ask this, which journalist would share their source? And if they have an insider providing information, why would they then share who that was? Only to appease the CEO of the company he is reporting on?
And why is the twitter account gone? If they sold it to the buyer would they really just close it down? Well if it is one of the companies the account is pointing a finger at, maybe. But if it is someone who bought it, then they would use it to try and get their money's worth. My guess, therefore, is the account got suspended for some reason.
The third and last thing is more of an observation. If we look at the other companies that recently have become insolvent and filed for bankruptcy. Despite Celsius knowing they were in trouble as early as late 2021 it did not stop them from trying to get new people to put money into their sinking ship. So a CEO slinging some mud back at a twitter account that is no longer there and defending themself from "FUD". Personally, I see this case as more damaging than reassuring. And I have said so in a previous post as well. If one twitter account with ~30k followers can shake the fifth largest exchange to its core. Then just maybe the foundation is not as solid as they are claiming.
This attempt at reassuring the customers from KuCoin has actually done more of the opposite, at least for me. But maybe I never really was their target consumer? Anyway, I have only tried to share some light on this whole strange situation. And hopefully, you will be able to draw your own conclusions. But I would love to hear what your thoughts are on this whole strange situation. Please share them in the comment section down below.
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See you on the interwebs!
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https://www.kucoin.com/blog/be-aware-of-fud
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