- Huobi receives a total of $209.15M in crypto from a whale; denies connections with TRON’s Justin Sun.
- Rumors about Huobi executives’ detainment in China and financial insolvency circulate the crypto community.
Whale’s Massive Influx Raises Eyebrows at Huobi
On-chain data has illuminated significant transfers to the Huobi exchange, with a whale depositing $200 million in USDT and 5,000 ETH ($9.15 million). Notably, these transfers come at a time when the exchange is grappling with considerable outflows. According to DeFi Llama, this inflow has bolstered Huobi’s USDT supply to an impressive $273 million.
Interestingly, while Huobi acknowledges a balance of $400 million stUSDT, a project backed by Justin Sun of TRON, they have refuted claims linking these recent deposits to Sun. For those less familiar, stUSDT stands as the
“first real-world asset protocol on the Tron Network.”
Its adoption, however, has not reached widespread acceptance in the crypto ecosystem.
Yet, even as these significant deposits bolster the exchange’s holdings, Huobi is not without its challenges. Data from Nansen.ai indicates that in just the past week, Huobi has seen outflows of $92.2 million in Ethereum-based tokens, with an overall departure of $101 million across all blockchains.
Rumors, Denials, and the Specter of Insolvency
Adding to the exchange’s whirlwind week are unconfirmed whispers about the detainment of Huobi executives in China. These rumors have fueled speculation about the platform’s financial health and its leadership’s alleged ties to illicit gambling operations. Moreover, chatter about a top executive leaving the exchange adds to the atmosphere of uncertainty.
Huobi’s potential financial instability became a central discussion point when fintech figure Adam Cochran voiced concerns about disparities in the exchange’s USDT holdings. Drawing on data from DeFiLlama, Cochran suggested that with less than $90 million in combined USDT and USD Coin assets as of August 5, Huobi might be on shaky financial ground.
Intriguingly, Cochran has also posited that Binance, another behemoth in the crypto world, might be deliberately shedding its USDT holdings. This strategy could serve to undermine USDT’s dominance in favor of other stablecoins from which Binance derives profit.
In response to the swirling rumors and insinuations, Justin Sun, Huobi chief and founder of TRON, took to social media, urging his followers to
“Ignore FUD, keep building!”
Thanks for the update, I believe there needs to be more investigation into the information source and avoid FUD.
— 三三 💙 Huobi (@33Huobi) August 6, 2023
He affirmed his and the community’s commitment to the platform’s vision and growth. Additionally, Huobi’s official channels reinforced this message of resilience and continuity, highlighting their ongoing endeavors to provide a democratic and transparent trading environment.