A recent analysis from CryptoQuant informed that KuCoin, which has had its fair share of struggles in the past few years, has lost over 14,000 BTC from its reserves after it introduced mandatory KYC requirements for all users.
In contrast, Binance’s share continues to grow as the clear market dominator in terms of BTC reserves.
77.6% Decline in BTC Reserves
The pivotal decision that resulted in the aforementioned decline stems from a strategy shift introduced in June 2023. After the rumors started circulating in the beginning of the month, KuCoin made it official at the end of it when it ordered all of its users to complete mandatory KYC procedures.
According to CryptoQuant’s OnChainSchool analyst, this decision started an evident downtrend that continues to this day. To be more precise, the report informed that the BTC held on KuCoin dropped from around 18,300 in early June 2023 to just 4,100 BTC now – a net outflow of 14,200 bitcoins, which represents a 77.6% decrease within less than two years.
The analysis admitted that there’s an ongoing overall trend showcasing that the amount of BTC stored on exchanges is declining almost everywhere, but the KuCoin case is “extreme.”
“The timing and magnitude of this inflow strongly correlate with the enforcement of KYC,” – concluded the analyst.
Shortly after in 2023, there were reports that the company had laid off a substantial portion of its workforce. Additionally, the exchange faced regulatory issues in the US, which included a few multi-million dollar settlements.
Binance Dominance Rises
Although it’s true that investors are, in general, pulling BTC out of exchanges, the market share of one particular trading venue continues to increase – Binance. The CZ-founded giant also had a lot of controversy surrounding it, which included a multi-billion dollar DOJ settlement as well as Zhao’s departure as CEO, but that has not deterred investors.
Just the opposite; its overall bitcoin reserves share continues to increase for the past five years or so (ever since COVID-19 broke out). Consequently, its share has grown to 23% of all BTC reserves stored on centralized exchanges.
The post Here’s Why KuCoin Lost 77% of Its Bitcoin Reserves in Less Than 2 Years appeared first on CryptoPotato.
The BTC reduction came after the introduction of mandatory KYC checks. AA News, BTCEUR, BTCGBP, BTCUSD, BTCUSDT, Crypto News, Bitcoin, KuCoin
This articles is written by : Nermeen Nabil Khear Abdelmalak
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