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- 1 Huobi is facing headwinds following the recent reports of executives arrested in China.
- 2 The TVL and training volume saw an abrupt rise following Justin Sun injecting 200 Million USDT.
Cryptocurrency markets always remain on and continue. As a result, speculations and hot trends do not get old in the crypto space. Right now, the speculation market is hot and the center of conversation is Justin Sun’s crypto exchange, Huobi Global. The crypto exchange saw a negative netflow over the platform in the past days. But recent data shows an uptick in inflow up to three times the outflow reported earlier.
The recent discussion was ignited following the alleged arrest of several senior executives of Huobi in China. Local media outlets in Hong Kong reported the instance initially which was later picked up by prominent crypto news providers such as Wu Blockchain. Though the company denied the reports alleging the arrest, crypto users were seen to empty their accounts over Huobi crypto exchange.
On Saturday, August 5, 2023, Huobi witnessed an outflow of over $40 Million and nearly $25 Million on Monday this week, according to DeFiLlama data. The total value locked (TVL) over the platform dropped to $2.5 Billion.
However, at the time of writing, data shows the inflows rose to nearly $94 Million and TVL stood at $3.22 Billion.
Huobi TVL and Volume Increases Raises More Concerns
The sudden change in the dropping numbers to soaring came in the wake of Justin Sun’s allocation of his recent USDT purchase to the crypto exchange.
A crypto wallet address said to belong to the Tron founder reported to withdraw 200 Million USDT. The significant stash of stablecoin transferred from JustLend to Huobi. The USDT reserve over the exchange rose from $85 Million to $285 Million after the recent deposit.
Such whack ups within the matter of days in one of the largest cryptocurrency exchanges in the industry raises concerns, especially when the world has already seen some disastrous events following such hiccups.
The ramping up of regulatory scrutiny and actions over the broader crypto industry could be the concern of Huobi as well. The crypto exchange has its operations in more than one country and the news of legal actions against its employees would not be treated lightly.
Prominent investor and one of the well-known figures within the crypto space, Adam Cochran, bombarded tweets in the past several days raising questions on the recent events around Justin Sun, Huobi and its executives, Tether (USDT) etc.
In a recent tweet, Cochran highlighted that Chinese authorities are currently questioning executives from Huobi. The exchange’s financial instability, attributed in part to allegations that owner Justin Sun misappropriated customer funds, was also mentioned. This situation reportedly prompted some users to sell their Tether holdings on the platform.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
