Singapore-based cryptocurrency exchange, KuCoin was called out for discrepancies in their trading volume, and a bonus was issued to KCS holders.
KuCoin released a statement with regard to this and listed “major causes” for these mismatches:
“The average trading fee rate per account dropped as we have seen an increase in premium account holders that are offered lower trading fee rate according to their contribution of high trading volume and large amount of KCS holdings”
This could mean that the premium account holders could have lost more trading fees as compared to other account holders.
The exchange further added that it hired “professional market makers” in order to provide adequate liquidity to the derivated trading platform along with Spot margin trading platform, which is yet to be launched. However, the users were not satisfied with the exchange’s response. A Twitter user @GreatSoloQueue said:
“If you wanted actual liquidity you would have market makers sit on both sides of the order book not wash trade.”
As the exchange responded to the allegations, it also announced that from July 1 it will be conducting a weekly buyback equaling the total amount of Bonus issued within the weeks and burn the KCS collected. This would go on until the exchange launches its new mechanism of KCS in the third quarter. The holders will still be able to receive the bonus on the amount of KCS they hold in their KuCoin account.
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