The CEO of crypto exchange KuCoin says it is launching an “Anti-FUD Fund” to track down and potentially take legal action against “FUDers” and educate crypto users on identifying misinformation.
Johnny Lyu, CEO of the exchange, announced the fund in a Tuesday Twitter thread, coming only days after publishing a blog post criticizing Twitter user Otteroooo for spreading misinformation about his firm.
Lyu said the Anti-FUD fund will cover three elements, the first being education, which will “deliver knowledge, including what is FUD and how to distinguish it” through online and offline means.
The fund will also motivate and acclaim industry leaders and influencers who are responsible, deliver trusted information to their audiences and help their followers avoid FUD.
Finally, the fund will seek to effectively trace and potentially take legal action against individuals who “intentionally spread FUD.”
“The spread of FUD and panic harms projects, users, and the industry. Those actions must be held to account,” explained Lyu.
Speaking to Indian Express earlier this week, Lyu addressed the topic of market FUD, saying that people who spread rumors should be held accountable for their words, as they can affect the market, adding that he believes Web3 technology can solve the problems relating to traceability and accountability:
“The accountability mechanism in the Web 2.0 era is not mature enough and the cost of spreading rumors is very low.”
He made the comments with the outlet at the same time as noting that the firm is making efforts to expand its services into India.
The fund’s launch comes a short time since Lyu had a heated exchange with crypto industry whistleblower Otteroooo on July 2.
Otteroooo accused KuCoin of having exposure to the former Wrapped LUNA (wLUNA) token, which crashed in dramatic fashion in May, leaving the exchange insolvent. Lyu denied that the exchange had internal exposure to LUNA and is not insolvent. Otteroooo’s account has since been removed from Twitter.