Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange

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Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange

The heat has actually been on crypto exchange KuCoin just recently after a Reddit user called them out on Reddit concerning funds being hung on the exchange. The user had actually very first required to Reddit to vent their aggravations in an open letter to CEO Johnny Lyu after making no development with its consumer assistance agents. According to the user’s declarations, the exchange was keeping ≈$50 K worth of crypto on the exchange.

The user discussed that KuCoin had announced that they would be supporting a brand-new BCH fork, eCash (XEC), leading them and lots of others to purchase the possession on the exchange. Issues developed when the exchange had actually lacked liquidity for the cryptocurrency. KuCoin users understand that they might not offer their holdings without doing so at a considerable loss (selling for cents to the dollar).

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Nevertheless, a much ominous concern developed when they learnt they might not move the coins out either. Ever since, the user declared that they have actually had ≈$50,000 worth of crypto being kept by the exchange for over 6 months and still have actually not been enabled to move their coins.

Open Letter To KuCoin CEO

The Reddit user who passes the username u/BCHcain had actually very first accentuated the concern when they published an open letter to CEO Johnny Lyu about 4 days back. Outdoors letter, they consist of screenshots of their interactions with the assistance personnel going back a minimum of 6 months. The user discussed that KuCoin had actually been providing the runaround without any genuine indicator of fixing the concern and had ‘invoices’ to back this up.

CEO Johnny Lyu had actually reacted to this open letter about 3 days after publishing, offering what might be referred to as a low-effort reaction to a plainly distressed user.

” Thanks for bringing it up. The upgrade is underway, and given that it’s not simply an easy rename or rebrand, we still require a long time to finish it. Thanks for your perseverance and understanding,” Lyu composed.

Reddit users had actually called out the CEO over the reaction, explaining that the response showed whatever that the user had actually declared in their post; that the exchange did not appear thinking about fixing their concern.

Getting In Touch With The Neighborhood

4 days after the open letter had actually been published, the u/BCHcain had as soon as again posted to Reddit. This time contacting the neighborhood to assist enhance the concern, explaining that if it might occur to them, then it might occur to anybody. This follow-up post amassed substantially more attention than the open letter.

The concern has actually raised issues over the power centralized exchanges have more than the funds of users. In such a way, these central exchanges manage user funds the very same method as banks, something that the crypto lovers are busily attempting to do away with.

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The crypto exchange had actually likewise been called out on the very same platform by another user who declared that KuCoin was using Cloudfare to deny access to the platform during bull rallies in order to require users to liquidate and after that benefit from these liquidations.

KuCoin is yet to react to the 2nd post. Nevertheless, it continues to trigger discussions around problems with KuCoin and CEXes in basic. Since the time of composing, the post has actually gotten 5.3 K upvotes and has 1.6 K remarks.

 Included image from CoinDesk, chart from TradingView.com

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