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KuCoin Market Share Decline
KuCoin’s market share has experienced a significant decline, dropping from approximately 6.5% to less than 3% due to substantial outflows of funds, as reported by Kaiko data on April 2.
Reasons for Market Share Decline
- Back-to-back lawsuits filed against the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) on March 26.
- Market makers leaving the exchange.
- Customers transferring funds to other centralized exchanges such as Binance, Coinbase, Gate.io, OKX, and MEXC.
Impact on Trading Volume
The exchange’s daily trading volume plummeted from $2 billion to $520 million, resulting in a decrease in its market share.
Outflows and Inflows
Outflows from KuCoin wallets, primarily in USDT and ETH, surpassed $600 million on March 26, exceeding inflows significantly. The exchange saw over $1 billion in outflows within 24 hours on March 27.
Customer Reactions
Customers have been moving their funds to perceived safer options such as Binance, Coinbase, OKX, MEXC, and others.
Legal Allegations
KuCoin faced allegations of breaching anti-money laundering laws and operating an illegal digital asset derivative exchange by the US DOJ and CFTC. The exchange denied any wrongdoing and stated that user assets are secure.
Response from KuCoin
KuCoin announced a $10 million airdrop program for affected customers and emphasized its commitment to compliance with regulations.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
