KuCoin Faces Declining Assets and Market Share amid Legal Complexities

By: Eliza Bennet

Undergoing legal challenges from US authorities, KuCoin has observed a distinct plunge in user assets. The latest proof-of-reserve certificate intimates a 25.4% decrease in Bitcoin holdings, along with a 22% fall for both Ethereum and USDT. These drops resulted from extensive user withdrawals, with over $843 million digital assets withdrawn from KuCoin in a week.

Simultaneously, the exchange has experienced a significant decline in its market share and trading volume. The daily trading volume fell significantly to around $520 million, leading to a drop in KuCoin's market share from 6.5% to less than 3%. User assets have reportedly been transferred to other central exchanges such as Coinbase, Binance, and OKX.

In response, KuCoin assures users of its stern compliance measures and continues its operations. The exchange recently announced an $8.9 million airdrop of its native token KCS and Bitcoin as a gesture to compensate users for withdrawal delays. Despite the current obstacles, KuCoin retains full backing of assets within its system.