Tron Network founder Justin Sun may have moved a huge amount of the Tether stablecoin into the Huobi exchange. Furthermore, the exchange has been embroiled in rumors regarding insolvency as liquidity dries up.
The Seychelles-based crypto exchange Huobi is currently fighting rumors regarding insolvency as outflows surge.
Justin Sun or Not?
On Aug. 8, Huobi advisor Justin Sun allegedly deposited a whopping $200 million in USDT to shore up exchange liquidity.
The transaction was recorded by the blockchain intelligence platform Arkham, which has labeled the address as his. The move follows deposits of $3 million in USDT reportedly by Sun earlier this week.
According to Etherscan, another transaction of 5,000 ETH worth around $9.1 million also came from an address attributed to Justin Sun. However, all may not be as it seems.
On Aug. 8, Sun retweeted a Coindesk article claiming that a Huobi Global spokesperson confirmed that recent large deposits on the exchange were not from Justin Sun.
BeInCrypto reached out to Justin Sun for comment but had not heard back at the time of publication.
CEHV partner Adam Cochran, who has been on the warpath against several crypto executives lately, said:
“Hmm the new address seems to have some history of sweeps into Huobi, so it looks like he’s withdrawn from the Huobi hot wallet, used the funds then deposited through his deposit address to ‘show confidence.’”
Furthermore, Huobi’s total balances have increased by 10% over the past day, according to Arkham. The platform currently reports a total balance of $3.2 billion. However, it has been down trending since the beginning of July, falling from $3.6 billion to $2.9 billion by Aug. 7.
Moreover, Huobi’s supply of USDT has increased to $273 million, according to DeFiLlama.
Huobi Outflows and Battling FUD
Over the weekend, more than $64 million worth of outflows were registered on Huobi. Nansen reported that a large portion of the exchange’s holdings are tokens linked to Sun and his networks and projects.
“More than 50% of Huobi’s holdings are in assets closely affiliated to the exchange TRX (23%), HT (16%), and STUSDT (13%).”
The exchange has been battling FUD and a torrent of outflows recently. On Aug. 7, Sun Tweeted:
“Ignore FUD, keep building! TRON and Huobi will thrive through continuous development. Trust in our vision and community efforts for a stronger future. Perseverance guarantees success!”
Industry observers have linked the outflows to ongoing rumors claiming Huobi executives were arrested in China. Meanwhile, Huobi’s native token, HT, appears to have weathered the FUD storm dropping just 3.6% over the past month.
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