KuCoin, a popular cryptocurrency exchange, is experiencing increasing withdrawal problems and potential legal issues.
It has recently announced a $10 million airdrop in Bitcoin and KuCoin tokens to address user concerns.
Johnny Lyu, the CEO of KuCoin, disclosed this initiative in response to users' withdrawal delays, particularly in the wake of recent charges levied against the exchange by the US Department of Justice (DOJ).
"Thanks for standing by and trusting KuCoin during this time. It means a lot to us.
With great gratitude, we'll launch a special $10M airdrop in $KCS & $BTC to the users who experienced longer-than-expected wait times during the withdrawal process in the past 2 days.
Details coming out in 3 days," he stated on X.
Withdrawal Woes Amid Legal Turmoil
KuCoin Airdrop 2024: Due to the recent allegations against KuCoin, the exchange is fighting an influx of withdrawal requests.
Within a mere 24 hours, outflows from the exchange have soared past $1 billion, showing the magnitude of user apprehension.
Notably, the exchange's total assets have decreased by 20%, amounting to $4.8 billion.
Consequently, concerned users seek to secure their holdings during this challenging period.
Addressing User Concerns and Enhancing User Engagement
KuCoin has released details of the $10 million airdrop in response to the dissatisfaction and operational disruptions.
This initiative aims to compensate affected users and cultivate a sense of loyalty and appreciation within the community.
Thanks for standing by and trusting KuCoin during this time. It means a lot to us.
— Johnny_KuCoin (@lyu_johnny) March 27, 2024
With great gratitude, we'll launch a special $10M airdrop in $KCS & $BTC to the users who experienced longer-than-expected wait times during the withdrawal process in the past 2 days.
Details…
The exchange aims to prioritize user satisfaction and engagement and fortify its standing as a reliable and user-centric platform during operational challenges.
How to Claim the Kucoin Airdrop
The Kucoin airdrop is live, and the exchange has highlighted the steps users can take to claim their share.
Users who are eligible for the drop are only those who have been affected by the withdrawal issues.
The airdrop amount is $8.95 million, equivalent to BTC/KCS. Users will be paid about 5 to 200 USDT based on the the congestion time faced.
Here's how to claim:
- Airdrop distribution will be issued as token vouchers exchangeable for a BTC or KCS equivalent.
- Users can claim the voucher airdrops in the Kucoin app under "My Coupons"
Striving for Operational Resilience Amidst Regulatory Scrutiny
Despite the looming regulatory challenges facing KuCoin, the exchange is committed to providing uninterrupted service to its global user base.
Despite increased withdrawal delays due to heightened regulatory scrutiny, KuCoin assures users that remittances are still being processed. However, there may be potential delays due to the higher volume of requests.
Spot on Chain confirmed this assurance, affirming that KuCoin continues to fulfil its operational obligations despite the challenging circumstances.