The KuCoin token (KCS), trading in the negative at the time of writing, has suffered severe losses over the past week. After the FTX collapse, the token began to fall along with the whole crypto market. However, the recent failure of the FTX collapse may be helpful for exchanges like KuCoin.
After FTX filed for bankruptcy, Johnny Lyu, CEO of KuCoin, assured customers that the exchange would always be open and honest. Lyu’s need for transparency served as the primary impetus for the token’s recent rise. Merkle proof-of-reserves will be accessible in one month, KuCoin has publicly stated.
After the FTX Token FTT/USD tragedy, KuCoin CEO Johnny Lyu was the first to declare “Proof of Reserves.” According to Lyu, “Proof of Reserves” directly responds to user concerns that they cannot access their money because some exchanges have withdrawal restrictions. The exchange will disclose its Proof of Reserve data in four weeks, according to the CEO.
He thinks that the report would provide customers peace of mind about the security of their money. Lyu said the information would support his claims that the business had enough cash to pay out large withdrawals. Lyu compares the current state of the market to a “spreading illness.” He explains it by the sharp decline in the value of cryptocurrency.
The market value of all cryptocurrencies dropped from £846.6 trillion to £733.8 million in a few days. He said, “It hurts to see innocent customers be harmed,” acknowledging that it will take some time for traders to have faith in cryptocurrency exchanges once more. The global cryptocurrency market appears to be in trouble, with a decline of 0.72% during the last 24 hours. During this time, the worldwide market volume likewise decreased by 1.35 percent.
Despite these advances, the worldwide market worth is less than £756.42 billion. This suggests that most cryptocurrencies must recover from the weekend’s significant decline. BTC is currently down more than 5%, while ETH fluctuates by 1.09% week over week.
Also down today by 2.94% is KuCoin. However, the positive tone on its one-hour chart suggests that the currency may trade in the green during the next several days. The coin’s value has varied significantly throughout this time between £6.26 and £8.29, indicating a giant price swing. Investors are rushing to profit on KuCoin’s recent price increase, as seen by the apparent upward trend in the price chart. KCS will make another try at the $8.29 barrier level if the token continues to rise. Due to this, it might increase to £7.35 or even £756.4.
The bears are refusing to debate buying momentum with an RSI reading of 51. The price action, however, is optimistic and points to more upward potential. The majority of tokens will need a while to recover from their weekend losses. This suggests a possible reversal that might push KCS back to its £6.30 support level.