KuCoin may have missed the biggest market opportunity of the year
KuCoin, the Singapore-based cryptocurrency exchange was hacked on September 25, losing about $ 280 million. The executive chairman of the exchange, Johnny Lyu, confirmed through a tweet that the exchange managed to recover $ 235 million (about 84%) of the stolen assets by November 11.
In the meantime, the price of Bitcoin (BTC) has gone up, going from around $ 10,100 on September 3 to above $ 19,000 in late November. The exchange missed a major opportunity for the most part by focusing on recovering the affected assets. Most of the exchanges that were in operation at the time appear to have capitalized on the price increase.
According to Nomics, Binance’s turnover increased exponentially by 133% in November alone. Compared to the previous year, the exchange’s turnover is more than 400% above. Kucoin’s turnover, on the other hand, is currently 21% below 2019. Turnover at Coinbase Pro has soared 200% and 92% in the month and year, respectively. For Kraken, these numbers are 163% and 54%.
Nomics data also shows that KuCoin was able to complete $ 3.97 billion in transaction volume last month. Although this represents an increase of 78% compared to October, the exchange should still approach the volumes of July and part of September before the hack.
There is no arguing that the timing of the hack could not be worse based on these numbers. The price of BTC increased from $ 10,739 to $ 16,284 between the date of the hack and when most of the stolen tokens were recovered.
CryptoQuant data revealed that Bitcoin reserves in KuCoin wallets decreased from just over 1,000 to less than 50 between September 24 and 25. This number has increased since then and now stands at 403. However, Kucoin is not the only exchange that has lost the bull market.
OKEx Exchange suffered a similar loss after it was reported that its founder had been taken into custody. Consequently, the Malta-based exchange suspended withdrawals between 16 October and 26 November. With OKEx, only withdrawals were not available, although users could still trade during peak bull market.