LUCKNOW (CoinChapter.com) — KuCoin, one of the leading crypto exchanges, has announced plans for a significant $10 million airdrop to thank its users for their continued support and patience during recent service disruptions.

A Letter From KuCoin CEO To Its Loyal Customer Base

In a letter addressed to KuCoin users and supporters, CEO Johnny Lyu expressed his gratitude for the community’s trust and companionship throughout the exchange’s seven-year journey. Acknowledging the challenges faced by the crypto industry, Lyu emphasized KuCoin’s commitment to ensuring the security of user assets and compliance with regulations.

From the beginning, KuCoin’s mission has been to grow alongside the crypto industry and to drive global recognition, acceptance, and love for this sector. Our commitment to user value has always been our guiding principle.

Lyu stated in the letter.

The airdrop, valued at $10 million in KuCoin’s native KCS token and Bitcoin (BTC), is a gesture of appreciation for the support and patience demonstrated by KuCoin users during recent withdrawal delays experienced on March 26th and 27th. Lyu offered a sincere apology for the inconvenience caused by the longer-than-expected wait times.

A surge in users attempting to withdraw their funds from the exchange in light of the legal actions potentially caused the withdrawal delays. This makes the airdrop a strategic move to incentivize and reward users who remained loyal during this period of uncertainty.

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The exchange is recognized as a “People’s Exchange”. It earned this recognition through proactive compensation efforts in the past. In the letter, Lyu reiterated KuCoin’s commitment to providing higher quality and safer services while growing alongside its user base.

The specific rules and details of the $10 million airdrop event will be officially announced within the next three days. Users are also advised to exercise caution and be aware of potential scams.

Regulatory Clouds Loom Over Airdrop Skies

However, airdrops are not without their own risks. The Securities and Exchange Commission’s (SEC) “Framework for ‘Investment Contract’ Analysis of Digital Assets” states that airdrops may constitute a sale or distribution of securities, potentially subjecting them to regulatory scrutiny.

In his letter, Lyu expressed gratitude to KuCoin users, alluding to the recent legal actions taken against the exchange and two of its founders by the U.S. Justice Department and the Commodity Futures Trading Commission (CFTC).

The Justice Department unveiled an indictment against KuCoin on March 26th. It accused the exchange of violating the Bank Secrecy Act, failing to implement an adequate Anti-Money Laundering program, and operating an unlicensed money-transmitting business.

Simultaneously, the CFTC initiated a civil case against KuCoin for violating the Commodity Exchange Act and CFTC regulations.

KuCoin Token (KCS) Market Performance

At the time of this writing, KuCoin Token is trading at $12.12, up 3.2% from the last 24 hours. However, the token has seen a substantial 18.17% decline in its USD valuation over the past week.

Source: Kucoin

In the last 24 hours, KuCoin Token has recorded a total trading volume of $6.24 million. With a circulating supply of 96,287,258 KCS, its current market capitalization stands at $1.15 billion.

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Filed under: Bitcoin - @ March 28, 2024 8:18 pm