Huobi’s Stablecoin Reserves Drop 30% as Company Grapples with Arrests
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A week of chaos sees the stablecoin reserves of Huobi, a prominent digital asset exchange, decline by a significant 33%. This downturn in reserves, as tracked by the data analysis platform Nansen.ai, is concurrent with a withdrawal of roughly $49 million in stablecoins by traders.
An Unstable Stablecoin Reserve
At the dawn of the year, Huobi proudly boasted a balance of $3.1 billion. However, recent figures from DeFiLlama, a popular DeFi tracking site, indicate a sharp drop to approximately $2.5 billion. This decrease hints at the unstable nature of Huobi’s reserves amid mounting challenges.
A deeper dig into Huobi’s holdings sheds light on its investment preferences. The exchange’s most significant reserves lie in tokens linked to the business network of Justin Sun, the popular blockchain entrepreneur.
TRX, TRON’s native token, represents a substantial 26.5% of Huobi’s holdings. Additionally, the exchange’s proprietary token, HT, makes up 20.32% of the total reserve.
The Liquidity of Huobi’s Assets
Huobi’s portfolio consists of roughly $1 billion in easily convertible assets. DeFiLlama’s data reveal that the exchange’s most liquid assets are Bitcoin, amounting to $886.92 million, followed by $48.27 million in USDT (Tether), and $5.41 million in USDC (USD Coin).
The Detention Allegations
Adding to the exchange’s turmoil, famous Chinese blockchain journalist Colin Wu reported the detention of multiple top executives of offshore cryptocurrency exchanges by Chinese police. Despite the lack of specifics in Colin’s report, the news sparked widespread concern in the financial community.
Hong Kong’s financial media outlets reported over the weekend that several Huobi executives had been apprehended by Chinese law enforcement. This report has been met with denial from a Huobi spokesperson, who rebuffed allegations of any arrests within the exchange’s top management as outflows from the platform escalate.
In light of these recent events, Huobi appears to be grappling with its fair share of instability and controversy, making its journey in the crypto universe one to watch closely.
