There seems to be an ongoing battle between Kaspa community and MEXC. Considering Kaspa holders are super bullish on KAS long-term, some of them want to highlight what’s going on around this situation. The Kaspa price is now trading around $0.073 after dipping 4.5% today.
Kaspa Report posted another viral thread to their modest 5k following last night, so let’s see what they had to say.
What you'll learn 👉
The MEXC Withdrawal Mess
Things got heated when MEXC paused Kaspa withdrawals on March 26th. The exchange claimed they needed technical upgrades, but the community isn’t buying it. Kaspa Report called out MEXC for leaving traders in the dark. They argue that any decent exchange would give customers a heads-up before shutting down withdrawals.
On March 26th, MEXC addressed the Kaspa community's concerns about the withdrawal pause. Their response is linked below.https://t.co/dlF6nE9dmj
— Kaspa Report (@KaspaReport) March 27, 2025
Here’s the real kicker: MEXC could have done things differently. They could have set up a separate wallet to keep withdrawals running. But they didn’t. Even worse, they kept their KRC-20 token transfers active during the same period. Talk about a double standard.
The community is now questioning MEXC’s asset backing. Some traders are pointing to Kraken as a more transparent alternative. The key concern is about 1-1 asset backing. While MEXC remains tight-lipped, Kraken has been praised for showing proof of full reserves. This has pushed many Kaspa holders to consider moving their funds.
Christian Ludwig, a vocal community member, is leading a charge to migrate to Kraken once withdrawals resume. His message is clear: traders want an exchange that shows exactly where their money is. The lack of transparency from MEXC is raising red flags for many in the Kaspa community.
Read also: Kaspa’s (KAS) Flash Crash Wasn’t a Bug, But a Wake-Up Call for Crypto
Accusations of Manipulation
Things got even spicier when Kaspa Report brought up some serious allegations. They claim MEXC might be using bots or paid agents to shut down any criticism. When asked about these claims, MEXC stayed silent. Red flag, much?
The timing looks suspicious too. MEXC dropped this withdrawal pause right after Kaspa’s price jumped up. Suddenly, the price went flat. Traders noticed MEXC’s Kaspa prices were 3-4% lower than other exchanges. Coincidence? The community doesn’t think so.
The Kaspa price drama tells its own story. Before MEXC’s withdrawal halt, Kaspa was on a roll, climbing nearly 50%. But the moment MEXC hit pause on withdrawals, the price went totally flat. Even though it might be just a weird coincidence, many in the community aren’t buying that explanation. The timing looks too perfect – a massive price jump, followed by an immediate withdrawal freeze, and then price stagnation.
Although possibly coincidental, we observed that MEXC imposed its withdrawal halt right after Kaspa's price rose nearly 50%. After the halt, Kaspa's price stagnated. pic.twitter.com/LNCYCYHfxb
— Kaspa Report (@KaspaReport) March 27, 2025
The Bigger Picture
At the heart of this drama is a bigger story. Kaspa Report believes this is exactly why we need decentralized technology. Centralized exchanges have too much power, and they can pull stunts like this with little consequence.
The community isn’t just complaining. They’re using this as a wake-up call. Kaspa’s technology could be the answer to these kinds of exchange shenanigans. The message is simple: decentralization is the future.
Right now, all eyes are on MEXC. Will they address the community’s concerns? Will they explain the withdrawal pause? Only time will tell. But one thing’s for sure – the Kaspa community isn’t backing down.
Read also: Why Kaspa Miners Are Smiling: Massive KAS Fee Surge Signals a Price Comeback
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