Attention owners KCS! This week may be far from your expectations…

Crypto assets or companies, thanks to exposure to FTX, either get dumped like FTT or shut down a store like BlockFi. It is alleged that the exposure of the KuCoin exchange to FTX is intimidating users. Amid the generally bearish market sentiment and BTC struggling to break the $18,000 resistance, users fear that the exchange could be negatively affected along with its native token (KCS).


Read KuCoins [KCS] Price Forecast 2023-2024


Johnny Liu, CEO of Ku Coin Exchange, clarified that there is no direct exposure to FTX. He reiterated that the exchange had never poured money into FTX. In addition, he indicated that they plan to release Proof of Reserves and Championship as an industry standard to rebuild confidence in the industry.

As part of the space transparency call, the CEO released hot and cold wallets for cryptocurrency holdings on the exchange.

It should also be noted that the exchange has held about 70 million KCS, its original token. Compared to the total circulating supply of NIS 98 million CC, the exchange held about three-quarters of the local currency. On the other hand, the Binance exchange held 58 million BNB, its original token, is out of 158 million in current market circulation. This is about a third of the total supply.

However, KuCoin’s proof of ownership post attracted mixed reactions from users. Some praised the move. But others have called for full transparency by showing their debt obligations and debts. The mixed sentiment undermined KCS price performance and exposed its holders to losses.

KCS on the charts

Source: TradingView

KuCoin is down 5% on the daily chart and traded at $7,324 on November 12. The Relative Strength Index (RSI) pulled back a bit from the oversold territory before turning towards it again. Additionally, KCS could have seen a massive sell-off amid a significant drop in prices. KCS lost nearly $50 million in market value, dropping from $770 million to about $720 million, according to Coinmarktcap data.

Metric view

Data analysis from feelings It showed that the KCS weighted sentiment is down, indicating a bearish trend on the token. In contrast, the number of active addresses increased over the past 24 hours as the price fell, a possible indication that users are dumping the token.

The slight increase in volume underlined the pressures of building sales which reduced the income of residents. Market capitalization achieved in 30 days was also positive through November 7. But on November 12, it moved deeper into negative territory, which showed that KCS holders in the short term incur more losses.

Source: feeling

While the clarity around FTX exposure and the issuance of Proof of Reserves was to build user confidence, the performance of KCS shows the opposite result. The current bearish market sentiment could expose KCS holders to further losses.

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