KuCoin Market Share Halves Alongside $1.2 Billion in Outflows After DOJ Indictment and CFTC Charges

Following charges from the U.S. Department of Justice and Commodity Futures Trading Commission last week, crypto exchange KuCoin KCS/USD has seen its market share by daily trading volume halve, according to a report from blockchain research and analytics firm Kaiko. Daily volume fell around 75% from $2 billion — before the back-to-back charges on March 26 — to $520 million. When the announcements were made, this caused a surge in users wanting to get their tokens off the platform, resulting in slower withdrawal times. KuCoin announced an $8.95 million airdrop program for users who experienced this withdrawal congestion, as well as a larger planned airdrop for users who didn't withdraw any assets during the period. However, the incentive was not enough to stop KuCoin's market share more than halving from 6.5% to 3%, per Kaiko data.

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