Crypto Twitter Freaks Out About KuCoin’s 300% BTC Yield, Exchange Explains How It’s Generated By DailyCoin

©Reuters. Crypto Twitter Freaks Out Over KuCoin’s 300% BTC Yield, Exchange Explains How It’s Generated

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• Users on Twitter were shocked to see KuCoin offering up to 300% APR on (BTC), (ETH), (USDT) and other deposits.
• KuCoin explained that high returns are generated through dual investment strategies and depend on a variety of factors.
• Other Twitter users were unconvinced by KuCoin’s statement, saying that astronomical APRs are always a bad sign.

Fear is rampant in the crypto industry these days. On Tuesday, users on Twitter were shocked to see that KuCoin, a centralized crypto exchange, announced nearly 300% APR on Bitcoin (BTC), 200% APR on Ethereum (ETH), and 100% APR on Tether (USDT). offers.

Alex Valaitis and other users shared a screenshot of KuCoin’s investment products and their massive APR forecast, questioning how such high returns could be achieved in a bear market, or at all.

Typically, returns are very high when an exchange or other platform runs out of certain assets and needs them to cover their liabilities or for other reasons. Returns of hundreds of percent are almost impossible to achieve, however, and so crypto-Twitter was right to believe something patchy was happening.

But KuCoin reacted quickly. The centralized exchange explained that the high APRs are part of its dual investment strategies, depositing one crypto asset with the ability to earn returns based on two assets. How much the depositor earns depends on how the deposited asset performs at maturity.

Needless to say, it’s a risky investment, hence the astronomical APR.

However, some were unconvinced by KuCoin’s statement. A Twitter user known as Bitfinexed, known for his constant criticism of Tether, said that centralized exchanges are “desperate for new deposits and resort to sneaky tactics.”

On the flip side

• It’s not entirely clear how KuCoin’s dual investment products work.
• It’s not the first time a centralized exchange or lender has offered high yields before announcing bad news.

Why you should care

KuCoin is a large centralized crypto exchange. While it’s not entirely clear how the dual investment products work, astronomical APRs are never a good idea to succumb to.

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