- KuCoin CEO publicizes change will airdrop $10 million in BTC and KCS
- FUD induced customers to withdraw over $1 billion from KuCoin
- Liu mentioned KuCoin will stay true to its motto of “individuals change”
KuCoin Alternate CEO Johnny Liu introduced KuCoin plans to airdrop $10 million price of KCS and BTC. In Lyu's phrases: “To specific our deep gratitude in your assist and endurance, KuCoin is launching a particular airdrop occasion with a complete of $10 million in KCS and BTC.”
Notably, this announcement got here after KuCoin acquired fees from each the US Division of Justice (DOJ) and the Commodity Futures Buying and selling Fee (CFTC).
The allegations in opposition to KuCoin have left many customers in a state of worry, uncertainty, and doubt (FUD), leading to roughly $1 billion in crypto withdrawals and a 20% decline in belongings below administration on KuCoin.
Addressing this subject and expressing gratitude to its loyal customers, KuCoin CEO said in a weblog submit on its official web site:
We wish to specific our gratitude to all KuCoin customers for his or her assist, belief and cooperation over the previous few days and over the previous seven years. As all the time, we are going to completely guarantee the protection of consumer belongings, adjust to legal guidelines and laws, and dwell as much as the belief positioned in us.
Trying again at KuCoin's previous compensations, Lyu mentioned: Uncommon delisting of CFD tasks. ”
He additional said that this proactive act of compensation gave rise to the title “Folks's Alternate”, which is proof that the group was initially optimistic about KuCoin. He mentioned they’ve all the time cherished this uncommon belief and that being the “Folks's Alternate” is their proudest label.
Nevertheless, airdrops have their very own issues. One in every of these points is the specter of regulatory affect.
In its “Framework for Analyzing ‘Funding Contracts’ for Digital Property,” the SEC states: Simply because digital belongings are acquired totally free, for instance in an “airdrop”, doesn’t imply that you’ll want to make investments funds. The Howey check isn’t met. Due to this fact, an airdrop could be thought-about a sale or distribution of securities.
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