Prompted by speculation over Chinese authorities probing the exchange’s operations and the company going bankrupt, Huobi users went on a selling spree to withdraw around $64 million over the weekend. However, Huobi Exchange CEO Justin Sun has claimed that the reports about the company going bankrupt were false and the negative price action that the Houbi Exchnage’s native token was witnessing was a case of ‘FUD’ or ‘fear, uncertainty and doubt’.
The speculations started doing rounds of the crypto market on August 4 after the Chinese law enforcement authorities allegedly detained Huobi’s top bosses in alleged connection with an ongoing probe into Huobi’s ties to some betting websites.
It has been observed that regulations determining the operations of crypto trading platforms are stricter in China than in many other countries. There’s also a lot of uncertainty about whether the recent resignation of a top Huobi executive was connected to the ongoing investigation.
However, the trading exchange social media manager has denied the allegations and claimed that the company was “doing well”. The assurance is in stark contrast to the claim made by fintech executive and angel investor Adam Cochran, who has alleged that Huobi is reportedly reeling under financial issues. Cochran has cited alleged inconsistencies in Huobi’s Tether balances to prove his point.
Cochran has claimed that Huobi’s latest ‘Merkle Tree audit’ indicates that the company currently holds $630 million in USDT. However, the on-chai data shows that as on August 5, it had less than $90 million in USDT. He claimed that the assets might not be enough to help Huobi pay off its debts.
Meanwhile, Sun has come out in support of the Huobi Exchange and referred to the allegations of bankruptcy as ‘FUD’. In a Medium blog posted on August 7, 2023, Sun claimed that the Huobi platform was operating as it should and was witnessing active participation in Primevote’s seventh round. Primevote is a vote-to-list campaign rolled out for the Huobi community. He also talked about Huobi Exchange’s upcoming 10th birthday which the company plans on celebrating the occasion with the platform’s fans.
About Huobi Global
Launched in 2013, Huobi Global is an exchange for buying, selling, and trading digital assets and has a presence in more than 100 nations. The China-based exchange is one of the popular sources of information about live cryptocurrency prices and the Top 10 cryptocurrencies. Its native cryptocurrency is the HT token and it serves as the medium of exchange of the network.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
