Johnny Lyuthe CEO of Crypto Exchange KuCoin was the first to announce after the ‘Proof of Reserves’ FTX Token FTT/USD Debacle sent shockwaves through the cryptocurrency industry.

In interaction with gasoline gaLyu said that “Proof of Reserves” is a direct response to users’ panic as they remain locked out of their funds — with several Exchanges suspending payouts. “It’s the only way to show users that your funds are safe and we’re solvent,” he said, as the exchange is four weeks away from launching its proof-of-reserve dashboard.

Referring to the current market scenario as a “spreading cancer,” Lyu points to crypto’s free fall, with total crypto market capital falling from $1 trillion to $873 billion in just a few days.

Apex cryptocurrency Bitcoin BTC/USD is down 22% in the last 7 days, while ether ETH/USD, Dogecoins DOGE/USD declined 23% and 28% respectively over the past week. “Nobody wants to see this, it’s heartbreaking to see innocent users getting hurt,” he said, acknowledging that it will be some time before traders trust crypto exchanges again.

When purchasing FTX: Lyu believes that only the collective effort of the entire industry can make a difference, and he is ready to do his bit.

He offers a solution to save the sinking FTX ship by acquiring or merging two brands – FTX and Alameda Research, both owned by Sam Bankman Fried, the founder of FTX. “Only a common brand can make a difference and maybe save FTX from breaking up.”

A rabbit hole: The CEO of KuCoin said that a “hole” had been discovered. He was referring to FTX reserves. “FTX is attempting to fill this gap with its own funds, but the problem is that FTX’s capital is spread across multiple exchanges.”

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Lyu emphasized that FTX is trying to withdraw all of these funds from multiple different exchanges. “Small exchanges were shocked by the sudden demand for hundreds of millions of dollars in one day,” he said…