Crypto belongings or corporations, due to the FTX publicity, are both being dumped like FTT or closing store like BlockFi. And allegedly KuCoin change’s publicity to FTX spooked customers. Amidst the general bearish market sentiment and BTC struggling to interrupt the $18K resistance, customers feared the change could possibly be adversely affected alongside its native token (KCS).
Learn KuCoin’s [KCS] worth prediction 2023-2024
Johny Lyu, Ku Coin change CEO, swiftly clarified that there was no direct publicity to FTX. He reiterated that the change by no means deposited cash in FTX. Moreover, he famous that they deliberate to situation proof-of-reserves and champion as an trade commonplace to rebuild belief within the trade.
As a part of the transparency name within the area, the CEO issued cold and warm wallets of its change’s crypto holdings.
From day 1 of constructing KuCoin, now we have been clear to our customers. The overview of a few of KuCoin’s cold and warm pockets addresses are clickable for his or her present holdings. https://t.co/zpjdlwoSpx https://t.co/vEuNY6LhW9
— Johnny_KuCoin (@lyu_johnny) November 11, 2022
Moreover, it was value noting that the change held about 70 million KCS, its native token. In comparison with the 98 million KCS complete circulating provide, the change held roughly three-quarters of the native coin. Compared, the Binance change held 58 million BNB, its native token, out of the 158 million within the present market circulation. That’s roughly a 3rd of the full provide.
Nonetheless, KuCoin’s publish of proof-of-funds attracted combined reactions from customers. Some praised the transfer. However others referred to as for full transparency by displaying their liabilities and debt obligations. The combined sentiment undermined KCS’s worth efficiency and uncovered its holders to losses.
KCS on the charts
KuCoin was down by 5% on the each day chart, buying and selling at $7.324 as of 12 November. The Relative Power Index (RSI) had barely retreated from the oversold territory earlier than making a U-turn in direction of it once more. Moreover, KCS may have witnessed a large sell-off amid its important worth drop. KCS shed nearly $50 million of its market cap, dropping from $770 million to about $720 million, as per Coinmarktcap knowledge.
A metric viewpoint
Evaluation of information from Santiment confirmed that KCS’s weighted sentiment dropped, indicating a bearish sentiment on the token. Correspondingly, the variety of energetic addresses elevated inside the final 24 hours as the worth dropped, a possible indication of customers disposing the token.
An uptick in quantity confirmed the constructing promoting strain that dented holders’ earnings. The 30-day Market Worth to Realized Worth (MVRV) was additionally optimistic until 7 November. However on 12 November, it tanked deeper into the damaging territory, thus displaying that short-term KCS holders incurred extra losses.
Though the readability on FTX publicity and issuing of proof-of-reserves was to construct consumer belief, KCS’s efficiency reveals the other final result. The present bearish sentiment available on the market may additional expose KCS holders to extra losses.