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HomeCrypto NewsDue to Concerns, KuCoin Explains Decision Undelegate 48B LUNC

Due to Concerns, KuCoin Explains Decision Undelegate 48B LUNC

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The exchange, KuCoin, stated that a modification in the pledge node of its financial account caused them to refrain from delegating the tokens.

Assuring customers that it will redelegate the tokens, Seychelles-based cryptocurrency exchange KuCoin recently stated that it had to undelegate its 48B LUNC stake due to a change in the pledge node of its internal financial account. 

The announcement follows the exchange’s abrupt de-delegation of all 48B LUNC tokens a few days prior, which raised several concerns among investors, including fears of insolvency.

Through a dedicated official Twitter account for updating support-related questions, KuCoin made the information public. 

The handle tweeted Thursday,  “Hi, the KuCoin validator undelegated 48b LUNC because the pledge node of the internal financial account switched.”  

They further assured consumers that their money was secure and that the tokens would be redelegated following the lockup period of 14 days.

The disclosure, which addressed some of the issues stated, was recently brought to light by LUNC influencer Classy, which caused the Terra Classic community to feel relieved.

KuCoin Undelegated 48B LUNC Without Prior Notice

Last month, KuCoin undelegated 48B LUNC tokens without making any prior announcements. 

As some people expressed worries about bankruptcy or a decision by KuCoin to stop LUNC delegations entirely, investors’ fears increased. 

The exchange also undelegated their holdings on other assets, including terra (LUNA) and cosmos, so while Classy had pointed out the worrying development, they might take comfort in that fact (ATOM).

According to data from CoinMarketCap and Binance, the action brought the circulating supply of LUNC tokens back above 6 trillion, presently sitting at 6.01 trillion. 

The circulating supply of the asset had already dropped under 6 trillion because of the frequent burns and stakes. 

The change reduced the amount of LUNC in circulation and dropped KuCoin to position 44 on the list of validators with the highest voting power.

KuCoin and LUNC Relationship

Because KuCoin continues to promote the Terra Classic community, the connection between the two currencies is still optimistic. 

When KuCoin staked 50 billion LUNC tokens in a single day in September of last year, it significantly decreased the asset’s supply in circulation. 

It increased its voting power to 8%, putting it in the top 5 validators with the highest voting power.

Following the adoption of tax-burn by both exchanges, with KuCoin contributing more, the community saw the burning of up to 70M tokens on KuCoin and Binance. 

On KuCoin, LUNC transaction volume topped that of Bitcoin and Ethereum in the days preceding the adoption of the tax burn policy. 

On September 9, it surpassed both of them to become the most traded asset on the market.

The accomplishment was also made on November 18, as noted by Classy. 

The asset had a 32% increase in transaction volume on KuCoin, becoming the most traded for the period.

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