As they take on a life of their own, rumours pose a significant barrier for any large business. At one moment, it is merely a rumour, but as it travels throughout the internet, it frequently becomes the basis for the fact—even when there is no fact to support it at all. The majority of the time, they are triggered either unintentionally or purposely. Recently, cryptocurrency exchange KuCoin has been subject to both of these issues, and typically the same persons are involved.
In particular, the recent FUDs made by a Twitter user with the pseudonym “Otteroooo” are becoming increasingly ludicrous, and every time “Otteroooo” contacted KuCoin, the trading platform did its best to answer his inquiries. However, despite the fact that the platform explains everything, he continues to fool about with spreading his FUDs on purpose. This is because he ignores the facts.
While other users have publicly admitted that their assumptions were incorrect, Otteroooo seems to have no problem making the same mistakes over and over again. This leads KuCoin to conclude that Otteroooo is either poor at fact-checking and evaluating or that he has some motive in propagating FUD.
In a recent blog post, Johnny Lyu, the CEO of KuCoin, divulged every detail of his communication with Otteroooo.
KuCoin Hits Back To Clear The Rumors
This entire dialogue between Johnny Lyu and Otteroooo concerns wLUNA. Otteroooo inquired of Lyu regarding the availability of wLUNA exposure for KuCoin, and Lyu responded negatively. Then he inquired as to why KuCoin’s wallet contained such a large quantity of wLUNA. Lyu noted that before the LUNA event, KuCoin supported LUNA altcoin (now LUNC) transactions in two different chains: the mainnet and the ERC-20 chain. Additionally, the LUNA coin that operates on ERC-20 was referred to as Wrapped LUNA (wLUNA) at the time.
Another issue he had was whether or not wLUNA deposits and withdrawals had ever been supported by KuCoin. He was provided with links to two KuCoin announcements by Lyu. ERC-20 LUNA support began in January 2021 and was discontinued in May 2022. The exchange comes to an end at that point.
However, the CEO of crypto exchange KuCoin further clarified that the majority of funds stored in KuCoin wallets do not belong to KuCoin; rather, they are the property of KuCoin’s customers. This is consistent with how other cryptocurrency exchanges operate. Therefore, KuCoin is responsible for maintaining its security and ensuring that users can always transfer their funds in full whenever they like. Lyu is confident that the distinction is clear between having a LUNC wallet and KuCoin holding a large number of LUNC tokens.
The Truth Behind The KuCoin Whistleblower
The CEO of KuCoin maintains that the so-called whistleblowing statements made by KuCoin employees contain numerous logical flaws and that these statements should not be believed. However, he also provided an explanation, which was as follows:
- Neither LUNA nor wLUNA is involved in any way with KuCoin’s operations.
- KuCoin places a strong emphasis on effective risk management.
- The most recent fundraising effort for KuCoin began in March of this year, and it has nothing to do with the LUNA event that occurred in May.
- KuCoin still has approximately 300 job openings.
In addition to this, Lyu has stated that he does not comprehend this whistleblowing because Otteroooo is unable to provide evidence that the individual in question was previously employed by KuCoin. According to him, the creation of such counterfeit photographs takes no more than 10 seconds. In the meantime, he observed that there are certain voices out there asserting that Otteroooo is attempting to benefit from spreading false rumors or even blackmailing some sites. He is holding out hope that these are also FUDs.
Personally, the CEO of KuCoin believes that what Otteroooo is attempting to accomplish by informing users about crypto sites that may have concerns is commendable. However, he would recommend that Otteroooo provide material that is backed by more genuine sources and evidence. If he does not change his position, he will undermine his own credibility.
