KuCoin sees $20 million outflow in 24 hours traders speculate the exchange is next after Binance

KuCoin, a cryptocurrency exchange witnessed mass outflows of $20 million overnight, sparking rumors and speculation within the crypto community. Crypto market participants speculate that the exchange’s outflow is a result of an investigation into the exchange’s executives. 

Also read: Binance cancels UK registration amidst mounting regulatory hurdles

KuCoin exchange outflow climbs amidst speculation

Based on data from Watchers Pro, a crypto intelligence portal, KuCoin’s netflow for the past 24 hours is 20 million at the time of writing. Over the weekend, KuCoin witnessed massive outflows, worth 0.8% of the exchange’s reserves.

According to Watchers Pro, KuCoin’s total asset reserve stands at 2.474 billion. There is no confirmation of the exchange undergoing an investigation. 

KuCoin exchange reserves and netflow

KuCoin responded to community rumors and explained that the platform is running normally and all user assets are safe. The exchange has assured the community that it has no business in mainland China and continues to operate out of Seychelles.

The US Securities and Exchange Commission (SEC) recently filed lawsuits against Binance and Coinbase. The financial regulator has taken no legal action against KuCoin, as of the time of writing. 

KuCoin token KCS nosedives in response to outflow

KCS, the native token of the exchange plummeted 13.2% in the same 24-hour period. This signals a shift in sentiment among community members and KCS token holders. 

KCS price dropped from $7.26 on June 18 to $6.29 on June 19. The decline in the token’s price was a response to large volume of outflows. It remains to be seen whether KCS price will recover from the decline.