KuCoin CEO, Johnny Lyu, has debunked another rumor that the exchange only has 300 Bitcoin in its wallets.
According to Mr. Lyu, popular tracking tools cannot identify exchange addresses because many are not labeled.
He was responding to another tweet that showed that KuCoin had over 16,000 Bitcoin in its wallets.
KuCoin CEO, Johnny Lyu, has debunked another rumor that the crypto exchange has only 300 Bitcoin in its wallets.
According to Mr. Lyu, the on-chain tracking tools currently available cannot rack all exchange wallets since they are not labeled. He added that in the past, KuCoin wallets had not been tracked by Glassnode, and the latter recently updated their Bitcoin wallet labels for KuCoin.
He shared his input on the status of KuCoin Bitcoin holdings through the following tweet.
Most on-chain tracking tools can't present the exact balance of exchanges. Not their fault, just because many exchange addresses are not labeled.
Previously many KuCoin wallets have not been tracked by Glassnode, and they recently updated the BTC labels for KuCoin. https://t.co/P70Nucio0f
Mr. Lyu was responding to another Tweet by crypto community member @TonCongHuy1, who had successfully identified KuCoin as owning over 16,000 Bitcoin. KuCoin’s CEO added that the 16k Bitcoin estimate was still low as the exchange had more addresses. He said:
Still, the current KuCoin BTC balance shown is underestimated as there are many KuCoin addresses not being labeled.
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KuCoin’s CEO debunking rumors of the exchange owning 300 Bitcoin come amidst other murmurs that it was facing insolvency due to financial exposure to collapsed LUNA, struggling Three Arrows Capital, and Babel Finance.
Mr. Lyu also debunked the insolvency rumors by stating that the exchange had no exposure to any of the collapsed crypto projects or hedge funds. He also added that the crypto exchange would soon publish a report highlighting its financial operations for the first half of 2022.
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Similarly, crypto community member Mārūsha, also known as @mattomattik on Twitter, stated that he had received information from a KuCoin insider confirming that the crypto exchange was in good financial health.
In addition, Mārūsha explained the FUD against KuCoin might be a tactic by some traders to move trading liquidity away from the exchange and onto another. He also cautioned the crypto community against believing everything they read on Twitter, as some influencers can use the social media platform for their selfish interests.