KuCoin’s Settlement with the U.S. DOJ Sparks 13.7% Increase in KCS, DeepSeek’s Release Shakes Tech and Crypto Markets and More: Jan 28

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Bitcoin is currently priced at $102,383.4, up 0.19% in the past 24 hours, while Ethereum trades at $3,203.62, up 0.51%. The Fear and Greed Index increased to 72, indicating a bullish market sentiment. On January 27, 2025, KuCoin settled with the U.S. Department of Justice (DOJ), reinforcing its commitment to compliance and responsible operations. This resolution boosted investor confidence, driving a 13.7% increase in its native KCS token and marking a positive new chapter for the exchange. China's DeepSeek AI app disrupted tech markets and Bitcoin fell below $100,000 for the first time since January 16, signaling potential shifts in the market, but the price of BTC rebounded quickly back to $102,383.4 with no signs of panic selling. Concurrently, MicroStrategy announced a proposed 2.5M share offering to acquire more Bitcoin, emphasizing its continued investment strategy and confidence in BTC. Meanwhile, President Donald Trump's recent executive order spurred $1.9B in crypto ETP inflows, reflecting renewed institutional interest. 

 

What’s Trending in the Crypto Community? 

  • On January 27, 2025, KuCoin settled with the U.S. Department of Justice, reinforcing its commitment to compliance and responsible operations. This resolution boosted investor confidence, leading to a 13.7% rise in its native KCS token in the last 24 hours and marking a positive new chapter for the exchange.

  • China's New DeepSeek AI app disrupted tech markets and Bitcoin fell below $100,000 for the first time since January 16, signaling potential shifts in the market, but the price of BTC rebounded quickly back to $102,383.4 with no signs of panic selling. 

  • MicroStrategy announced a proposed 2.5M share offering to acquire more Bitcoin, emphasizing its continued investment strategy and confidence in BTC. 

  • Donald Trump's recent executive order spurred $1.9B in crypto ETP inflows, reflecting renewed institutional interest.

Read more: MicroStrategy's Bitcoin Holdings and Purchase History: A Strategic Overview

 

 Crypto Fear & Greed Index | Source: Alternative.me 

 

Trending Tokens of the Day 

Top 24-Hour Performers 

Trading Pair 

24H Change

JUP/USDT

+8.58%

KCS/USDT

+13.77%

MOVE/USDT

+1.74%

 

Trade now on KuCoin

 

KuCoin's Official DOJ Settlement Marks a Positive New Chapter

Source: KCS Price |  KuCoin

 

KuCoin settled with the U.S. Department of Justice (DOJ), closing past issues and reinforcing its commitment to responsible operations and strict compliance. On January 27, 2025, KuCoin announced the resolution with the U.S. Department of Justice (DOJ) assuring global users that its operations in other markets remain unaffected. Over the past two years, KuCoin enhanced its compliance framework, expanded its compliance team, secured licenses in key markets, and implemented rigorous security standards. Under BC Wong’s leadership, KuCoin focuses on accountability and trust, positioning itself as a leading cryptocurrency exchange committed to growth and regulatory adherence.

 

Following the settlement announcement, KuCoin’s native token KCS, surged by 13.7% in the last 24 hours. Launched in 2017, KCS operates on the Ethereum blockchain and the KuCoin Community Chain (KCC). KCS holders benefit from daily bonuses from trading fees, fee discounts, and profit shares through staking on KuCoin Earn. KuCoin regularly buys back and burns KCS to reduce its supply, boosting its value over time. The significant price increase of KCS reflects investor confidence in KuCoin’s promising growth prospects in the new chapter.

 

Crypto Goes Risk-Off Amid DeepSeek Release

Source: https://www.deepseek.com/

 

Cryptocurrencies started the week in risk-off mode as Bitcoin (BTC) dropped over 5% in 24 hours, slipping below $100,000 and triggering a surge in long liquidations. This decline fueled bearish sentiment in the derivatives market, causing increased volatility. Geoffrey Kendrick, an analyst at Standard Chartered, highlighted Bitcoin's rising correlation with the Nasdaq 100 Index, which declined by 3% on Monday. Additionally, AI chip manufacturer Nvidia experienced a 15% plunge in early trading, marking its biggest drop since 2020. Bitcoin’s price has since recovered to $102,383.4 on January 28, 2025 and shows no signs of panic selling which is a positive for the crypto market.

 

Furthermore, AI-oriented crypto tokens were particularly hard hit. Near Protocol (NEAR) dropped 8%, Internet Computer (ICP) fell 9%, Render (RENDER) declined 10%, and Artificial Superintelligence Alliance (FET) lost 11%. These declines reflect the broader market's sensitivity to technological disruptions and macroeconomic factors. However, Kendrick views the dip as a buying opportunity, anticipating a market rebound once stability returns.

 

MicroStrategy Proposes 2.5M Share Offering to Fund More Bitcoin Purchases

Source: https://saylortracker.com/

 

MicroStrategy plans a stock sale to raise funds for “general corporate purposes,” including purchasing more Bitcoin (BTC), which currently stands at $102,383.4. This move signals the company's ongoing commitment to accumulating digital assets. In a January 27 announcement, MicroStrategy stated it will offer 2.5M units of perpetual strike preferred stock. Each unit carries a $100 liquidation preference per share and offers quarterly dividends starting March 31. Shareholders have the option to convert these preferred shares into common stock if they choose.

 

MicroStrategy now brands itself as the “world’s first and largest Bitcoin Treasury Company,” indicating a strategic shift from its original focus on business intelligence software. In fiscal Q3 2023, the company’s revenues declined by 10.3% year-over-year to $116.1M. Additionally, its gross profit margin fell to 70.4% from 79.4% in the same period last year, reflecting the financial impact of its increased Bitcoin investments and market conditions.

 

MicroStrategy Banks $1.1B More Bitcoin

MicroStrategy continued its aggressive Bitcoin acquisition strategy by purchasing an additional 10,107 BTC for $1.1B, bringing its total holdings to 471,107 BTC valued at over $47B. This marks the twelfth consecutive week of Bitcoin purchases, underscoring the company's long-term bullish stance on the cryptocurrency. Last Monday, MicroStrategy acquired 11,000 BTC for approximately $1.1B, followed by an additional $243M worth of Bitcoin the previous week.

 

To support its ongoing Bitcoin strategy, the firm launched a 2.5M perpetual preferred stock offering named STRK. This offering is designed to pay fixed dividends indefinitely, providing a stable financial foundation to bolster its Bitcoin acquisition efforts. MicroStrategy's continuous investment in Bitcoin highlights its confidence in the cryptocurrency's future performance despite current market volatility.

 

Read more: MicroStrategy Buys More Bitcoin with $1.1B, Pushing Holdings to 461K BTC

 

MicroStrategy to Raise Funds for Bitcoin with New Perpetual Preferred STRK Stock Offering

Source: Microstrategy

 

Michael Saylor's Microstrategy introduced a sophisticated financial instrument aimed at converting preferred stock into Bitcoin-related investments. According to a January 27 statement, MicroStrategy will issue 2.5M shares of Series A Perpetual Strike Preferred Stock, subject to regulatory approval and prevailing market conditions. The proceeds from this offering will support corporate operations, including further Bitcoin acquisitions and enhancing working capital.

 

Each share of the preferred stock comes with a $100 liquidation preference and accumulates fixed-rate dividends payable quarterly starting March 31, 2025. Dividends may be paid in cash, Class A common stock, or a combination of both. Shareholders have the option to convert their preferred shares into Class A stock under specific conditions, providing flexibility and potential upside. MicroStrategy retains the right to redeem shares if the liquidation preference falls below 25% of the initial issue or under certain tax-related scenarios. Redemption prices will consider any unpaid dividends or the greater of the liquidation preference or a calculated average trading price.

 

Bitcoin analyst Dylan LeClair described the offering as a “sophisticated financial tool” featuring an 8% dividend yield, a 10:1 conversion ratio, and a $1,000 strike price. He likened it to “a perpetual call option with regular dividends and no maturity date,” offering investors regular income without a fixed investment horizon. Additionally, MicroStrategy plans to redeem a $1.05B tranche of 2027 convertible senior notes, giving investors the option to redeem these at face value or convert them into Class A shares by February 24, 2025, at approximately $142 each. The company also approved increasing authorized Class A shares from 330M to 10.3B and preferred stock from 5M to 1B shares, further expanding its financial flexibility. MicroStrategy remains the largest corporate BTC holder with 471,107 BTC valued near $50B.

 

Donald Trump's Executive Order Sparked $1.9B Crypto ETP Inflow, Bitcoin Dominates

Source: Cointelegraph via X

 

President Trump's recent directive significantly boosted crypto exchange-traded products (ETPs), driving $1.9B in inflows last week, the second-largest weekly surge of 2025. This influx increased the year-to-date inflows to $4.8B, according to CoinShares. James Butterfill, CoinShares' head of research, attributed this spike to the executive order, which established a federal working group to explore strategic digital asset frameworks, proposed the creation of a “strategic national digital assets stockpile,” and halted further development of central bank digital currencies (CBDCs).

 

While the initial focus on a Bitcoin Strategic Reserve has expanded to a broader digital asset stockpile, Bitcoin remained the primary driver of inflows, securing $1.6B last week and bringing its year-to-date total to $4.4B, accounting for 92% of all crypto investment inflows in 2025. Bitcoin's trading volume reached $25B, representing 37% of activity on major crypto exchanges, highlighting its continued dominance in the market.

 

US-based Bitcoin products led the inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for $1.45B. Fidelity and Ark 21Shares followed with $202M and $173M. In contrast, Grayscale experienced outflows of $124M, bringing its total outflows for the year to $392M. Short-Bitcoin products also saw inflows of $5.1M, which Butterfill linked to Bitcoin’s recent price highs ahead of the presidential inauguration.

 

Ethereum saw a resurgence, attracting $205M in new investments last week, reversing earlier outflows and bringing its 2025 total to $177M. XRP gained $18.5M on growing optimism surrounding new ETF filings in the United States, raising its total inflows to $90M. Smaller altcoins such as Solana, Chainlink, and Polkadot also recorded modest inflows of $6.9M, $6.6M, and $2.6M, respectively, indicating a diversified interest in the crypto market despite overall volatility.

 

Trump EOs Drive $1.9B in Crypto Fund Flows

President Trump's pro-crypto executive orders fueled $1.9B in net inflows to global crypto funds last week, as reported by CoinShares. Notably, no crypto products experienced net outflows during this period, signaling strong investor confidence. US-based funds were the primary contributors, accounting for $1.7B of the total inflows. Bitcoin funds led with $1.6B, while Ethereum-based products added $205M. Additionally, XRP, Solana, and Chainlink attracted $18.5M, $6.9M, and $6.6M respectively before Monday's price pullback, reflecting strategic investments aligned with the new regulatory environment.

 

Conclusion

The native token of KuCoin exchange, KCS, saw a significant surge, climbing 13.7% following the settlement with the U.S. Department of Justice (DOJ). This resolution has bolstered investor confidence. 

 

Meanwhile, DeepSeek AI's technological innovations introduced fresh volatility to the market, which has since quickly stabilized. MicroStrategy's bold move to issue 2.5 million shares to expand its Bitcoin holdings highlights the company’s steadfast commitment to digital assets, even amid declining revenues and profit margins. As the Chinese Lunar New Year unfolds, analysts foresee increased market volatility ahead.Investors are encouraged to conduct thorough research and stay informed about the ever-changing market dynamics.

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