JuCoin Token Drops Over 70% in One Day
JuCoin’s token JU fell sharply on Tuesday evening, losing more than 70% of its value within hours. The token reached a high of $23.86 earlier that day but dropped to $7.66 by 4:45 PM. By late night, JU was trading at $7.08, wiping out billions in market value in one of its largest single-day declines.
JuCoin quickly reassured users that its operations remain unaffected. The company confirmed that all funds are secure and that trading and other business functions continue as normal.
As of now, JU is priced at $7.08, down 71%. Its market capitalization stands at $144.31 million, with a 24-hour trading volume of $1.07 billion, which is down 20.63%.
Regulatory Concerns Weigh on JuCoin
The sharp price drop followed a warning from blockchain investigator ZachXBT. He labeled JuCoin a “sketchy” sponsor of the upcoming Token2049 conference. ZachXBT highlighted JuCoin’s history of inconsistent regulatory compliance and anonymous trading practices.
Earlier this year, JU faced scrutiny after allegations involving its trading partner. These concerns have raised fears of increased regulatory action. Some observers compare the situation to the JPEX scandal, where regulatory issues caused a token crash.
Investor Confidence Declines Amid Volatility
JuCoin announced a $100 million expansion program in July, but investor confidence remains low. The project has not released proper audits, its team is mostly anonymous, and much of its trading occurs on smaller, less regulated exchanges.
These factors have led many investors to sell their holdings. JU recorded over $1 billion in trades in a single day, reflecting panic selling and uncertainty about the token’s future.
Experts also note JU’s unusually high trading activity compared to established coins like Bitcoin. This volatility has sparked concerns about possible market manipulation and instability.
Outlook for JuCoin
Traders are watching to see if JU can stay above its yearly low of $6.03. Some expect a short-term rebound after the steep drop, but overall sentiment remains weak. Regulatory actions in Singapore or South Korea could significantly impact JU’s future.
JuCoin now faces the challenge of rebuilding trust. With over 70% of its value lost in one day, investors are uncertain if JU can recover or if a deeper crisis is unfolding.
Source: CoinMarketCap
