https://www.huobi.com/en-us/finance/merkle/
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Topic: Huobi - the new trouble spot of the crypto world ? (Read 327 times)
Talking about audit and proof of reserves, the last audit from Huobi is dated from the first day of August, so it's not accurate to claim the 6th August that the balance has dropped from $700 to $90 million in a month and the Merkle Huobi tree hasn't been updated in a month. Personally, I don't understand and believe how $600 million USD can disappear in a couple of days. I hope they will publish a new audit soon though.
https://www.huobi.com/en-us/finance/merkle/
https://www.huobi.com/en-us/finance/merkle/
-Binance has started a massive sell-off of USDT.
How do you know about this, or where do I check this information?
All their audits for the past months show constant Tether reserves at about $18 billion.
https://www.binance.com/en/proof-of-reserves
Have you any news about Huobi DrBeer ? Because one month after those worrying claims everything seems to still work as usual at this exchange. I've made several withdrawals last week, and they've been executed quickly and smoothly. So I guess Huobi has finally managed to overcome those alleged issues. Being one of the last big non-KYC exchange save them from any critical liquidity issues for quite a while IMO. I'm waiting impatiently for their next audit though.
Some interesting information about what happened and the nature of the problem:
Cryptocurrency exchange Huobi faced a major outflow from August 5 to 6 due to rumors of alleged bankruptcy, causing its TVL to drop by nearly $54 million.
Cryptocurrency analyst Adam Cochran published a post on X (formerly Twitter), which he later deleted. He claimed that some members of Huobi and Tron's management team had been questioned by Chinese police.
Cochran even published a list of names of people who may have been arrested.
Having conducted his own audit of the exchange, the expert came to the conclusion that the balance sheets of users total about $630 million. At the same time, he estimated the platform's reserves at only $90 million.
The missing funds, as Cochran suggested, are used to support the profitability of Tron, Poloniex and other DeFi applications, which are controlled by Justin Sun.
https://forklog.com/news/huobi-stolknulas-s-ottokom-sredstv-na-fone-sluhov-o-neplatezhesposobnosti
That is, not only the use of funds for personal enrichment, but also the misuse of funds to finance and support other projects of his own
Cryptocurrency exchange Huobi faced a major outflow from August 5 to 6 due to rumors of alleged bankruptcy, causing its TVL to drop by nearly $54 million.
Cryptocurrency analyst Adam Cochran published a post on X (formerly Twitter), which he later deleted. He claimed that some members of Huobi and Tron's management team had been questioned by Chinese police.
Cochran even published a list of names of people who may have been arrested.
Having conducted his own audit of the exchange, the expert came to the conclusion that the balance sheets of users total about $630 million. At the same time, he estimated the platform's reserves at only $90 million.
The missing funds, as Cochran suggested, are used to support the profitability of Tron, Poloniex and other DeFi applications, which are controlled by Justin Sun.
https://forklog.com/news/huobi-stolknulas-s-ottokom-sredstv-na-fone-sluhov-o-neplatezhesposobnosti
That is, not only the use of funds for personal enrichment, but also the misuse of funds to finance and support other projects of his own
When I see the words "China, USDT, Tron, Justin Sun" in a post, I can only say that all this can only turn out to be a mess, although not something of the magnitude as with De Kwon or FTX. Some would certainly like this to be one big negative news that would drop the price of BTC by 20-30%, but I don't think that Huobi is something that has a big impact, and I don't think that USDT is something that can collapse just like that, except in case that the US and some other powerful governments get involved.
People simply do not care what it is about as long as there is a chance to make a profit, and considering that investing in BTC is no longer as profitable as before, there is no need to doubt that support for various crypto projects will continue. Millions of naive and gullible seekers of easy money dig for some digital gold every day in front of their small screens, and that's exactly what makes people like Justin Sun rich.
~snip~
The community should learn from this and stop supporting scammers and looking to finance new pump and dump ponzi schemes
The community should learn from this and stop supporting scammers and looking to finance new pump and dump ponzi schemes
People simply do not care what it is about as long as there is a chance to make a profit, and considering that investing in BTC is no longer as profitable as before, there is no need to doubt that support for various crypto projects will continue. Millions of naive and gullible seekers of easy money dig for some digital gold every day in front of their small screens, and that's exactly what makes people like Justin Sun rich.
If your friend is leaving assets on centralized exchanges, you should try to explain to him or else the consequences will be very unpredictable. Of course I agree with you on the point of not storing bitcoins or crypto assets on centralized exchanges, because that's not where we store our assets. But we also can't get rid of them completely, I mean we should use them for the right purpose. It is for trading and exchange, not a place to store long-term assets.
I would in a way understand that the very first investors that lost their money because of centralized exchanges were kind of naive and did not expected this to happen, but we have seen exchanges collapsing and taking their clients with them several times and the same is true for failed projects and coins, so how many times people need to watch the same events before they know how everything ends? At this point besides bitcoin and maybe ethereum no other coin should be trusted at all as the risk those altcoins collapse out of nowhere is simply too high.There is no doubt when you say that bitcoin and ethereum are the most reliable coins on the market. But that's not why we just focus on them and ignore the bigger opportunities. Agree with you that all altcoins are very risky but the higher the risk, the higher the return. If you are a risk averse, you should stay away from them, but for those who like to take risks, why pass up when we have a chance to get big profits?
I am not a bitcoin maximalist, nor do I want to be too rigid to lose other opportunities, I am willing to take risks for greater rewards. But this is not investment advice for anyone, altcoins are very risky.
...If Justin and his shitcoin did not have community's support, he wouldn't be able to pull this off and make enough money to pay Buffett a 4 mill for a dinner like it was nothing....
The problem is that this is society, and there are all of us. And many people still dream of mega-income from the crypto market, take their word for it, trust without thinking, but only seeing the "golden calf" ahead of them.... With such an audience, for many more years and even decades, you can find masses of such gullible and greedy simpletons who will carry their money and SUPPORT, and will even go to rallies in support of the one who robbed them. The problem is in us, and that is the biggest problem.
PS about the behavior of greedy and not very smart "investors", or rather the mysteries of such behavior, I recommend reading about the MMM pyramid and its leader S. Mavrodi, a very informative story. I see its repetition in many "projects" in the crypto world
as far as I know, that's just a rumor. Then this kind of news seems to just wake up the other users. But even so, if they have a large amount of funds in houbi, the best thing for users to do here is to first transfer their assets that they have here in Houbi to another platform, because we know that when centralized exchanges suddenly freeze all their user accounts, it's better to be double careful. Because it will be more difficult for us to release it when the unexpected happens.
If your friend is leaving assets on centralized exchanges, you should try to explain to him or else the consequences will be very unpredictable. Of course I agree with you on the point of not storing bitcoins or crypto assets on centralized exchanges, because that's not where we store our assets. But we also can't get rid of them completely, I mean we should use them for the right purpose. It is for trading and exchange, not a place to store long-term assets.
I would in a way understand that the very first investors that lost their money because of centralized exchanges were kind of naive and did not expected this to happen, but we have seen exchanges collapsing and taking their clients with them several times and the same is true for failed projects and coins, so how many times people need to watch the same events before they know how everything ends? At this point besides bitcoin and maybe ethereum no other coin should be trusted at all as the risk those altcoins collapse out of nowhere is simply too high. Not your key, not your coin. Why don't people understand this? Everything that is centralized is a piece of shit. Even those that are in the top 3. I still don't trust them 100%. When others have control over your assets, anything could happen to them. So I don't wanna hand over my asset's control to someone else. This is a direct red flag for the Huboi exchange. Why are people still using it? Do they not know about it yet or they are just ignorant?
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
I agree with what you are sharing. Indeed, taking control and learning how to protect assets in the crypto space is a very practical and smart point of view. When you manage assets yourself and learn how to keep them safe, you are making sure you are independent and not dependent on others.It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
Managing your own and thoroughly understanding how the cryptocurrency market works can really help you better deal with challenges and risks. With this in mind, you have the ability to create a safer environment for your assets and ensure that you are making informed decisions about using and investing in crypto assets. .
It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.
As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
We are not talking about a coin/token here, We are talking about Huobi being possibly insolvent because Justin Sun may been mishandling Huobi's customer funds.As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
I think that my post is 100% on topic. Tron and other shitcoins like it are, after all, the root of this problem.
If Justin and his shitcoin did not have community's support, he wouldn't be able to pull this off and make enough money to pay Buffett a 4 mill for a dinner like it was nothing.
This is also the reason why Sun is financing Huobi by byuing their HT tokens. It's like they're selling him shares and giving him control, but why is he able to buy millions of these tokens in the first place?
The answer is because dumb people are giving him money in exchange for his shitcoin (TRX)
The community should learn from this and stop supporting scammers and looking to finance new pump and dump ponzi schemes
Just like you, people use it for exchange and trading purposes, no one says they are leaving their money on Huobi or centralized exchanges.
There are people who think that CEX gives them more security than personal wallets. And I am not saying it just because I think that people think this way, it's because I have seen people do it and say it. I have a friend who does the same. He thinks that if anything happens to the CEX, its owner will compensate the lost amount somehow. He said it to me on his own. I tried to explain how dangerous it is and yet he wants to HODL his assets in CEX. Not for trading purposes but just to keep his assets safe. So here you go. There are people like this.
Now for the trading. You should only trade and invest what you can afford to lose right? If you are doing that, then there's no problem. If it's lost, then that won't matter that much. You will learn a lesson from that instead. But when you are hodling and want to keep your assets safe, then CEX is not the best option. It never was and never will be. Hope you got my point. People are staking in Huboi Exchange. Not trading to be exact. So that brings a huge red flag.
If your friend is leaving assets on centralized exchanges, you should try to explain to him or else the consequences will be very unpredictable. Of course I agree with you on the point of not storing bitcoins or crypto assets on centralized exchanges, because that's not where we store our assets. But we also can't get rid of them completely, I mean we should use them for the right purpose. It is for trading and exchange, not a place to store long-term assets.
Huobi is a big exchanges that I have used since 2018, of course I am surprised by this news and the classic issue of Exchanges that cannot serve the stable withdrawal of coins is certainly a serious problem, with this news I wary of and immediately move assets to private wallets.
Justin Sun is destined to be doomed. He is secretly cashing out money from his scam USDT using his Huobi exchange and other project connected to him. He was once caught cheating on his own giveaway sponsored to Binance.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
How does this Justin Sun guy manage to make trouble wherever he goes?
Every time there is an incident where Justin Sun is involved, somehow he manages to make the situation worse. Makes me wonder why Huobi is even partnering with him in the first place, after all the shady shit that went bust last year.
Oh, and their asset reserves were under intense scrutiny before too, because they kept it in some addresses, made the report, and then immediately moved them somewhere else.
I strongly believe people spreading such FUD are anti-Bitcoin and anti-crypto. You can always find some dirt on any CEX or crypto personality. Like in any other business (big business) there are very few persons who are morally upright, fair and all that. It's a rat race, if you expect someone to care about other people you're naive and childish.
But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!
But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!
I know very well from talking with you in other topics that it’s normal for you to deny reality
And also that your knowledge set does not allow you to conduct a reasoned, logical dialogue, proving or refuting this or that event. The only option for you to conduct a dialogue is to deny everything without giving arguments and lie and manipulate information. Therefore, in topics where the questions are already a little more complicated, you just have to repeat the same thing, like a parrot - FUD FUD FUD FUD FUD! 
I strongly believe people spreading such FUD are anti-Bitcoin and anti-crypto. You can always find some dirt on any CEX or crypto personality. Like in any other business (big business) there are very few persons who are morally upright, fair and all that. It's a rat race, if you expect someone to care about other people you're naive and childish.
But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!
But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!
Justin Sun likes pump and dump games which initiated by him several times. From announcing a lunch with Waren Buffet to some events when they tried to pump TRON and TRON stable coin. The most fearful thing from his stable coin is it uses algorithm that is what killed Terra stable coin UST in May 2022.
Months later, many stable coins lost their pegs including TRON stable coin but Justin Sun successfully protected the peg. However, I would like to remind that back in 2022, marketcap of TRON stable coin is very small so it was a bit easy for Justin Sun to recover the peg. Things can be very different in future when the marketcap is bigger and out of control from Justin Sun. That stable coin will possibly face with similar peg attack like Terra UST and lose its peg.
I think he uses that as a ploy for marketing, he does whatever he possibly could and then get some attention. Lately he just gave up and left as we all know, but while he was still active, his entire system was regarding how he wanted to just focus on how he could profit if he possibly could.Months later, many stable coins lost their pegs including TRON stable coin but Justin Sun successfully protected the peg. However, I would like to remind that back in 2022, marketcap of TRON stable coin is very small so it was a bit easy for Justin Sun to recover the peg. Things can be very different in future when the marketcap is bigger and out of control from Justin Sun. That stable coin will possibly face with similar peg attack like Terra UST and lose its peg.
Obviously that did not resulted with that much of a big deal, it's definitely a good thing to see how the situation is at that moment, and Justin realized that it's not going to be easy for him and then ended up getting out. But dude was a marketing guy, he wasn't a coder, or a designer or anything he really, he was just a marketing guy that did marketing stunts that resulted with pump and dump for Tron, and that is the issue.
It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.
As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
We are not talking about a coin/token here, We are talking about Huobi being possibly insolvent because Justin Sun may been mishandling Huobi's customer funds.As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
A moment of humor, from reality, and on a related topic:
Huobi .... Justin Sun goes for broke, and tries to somehow change the trajectory of his flight to court:
"Justin Sun, the owner of Huobi Bankrupt (https://t.me/c/1597252347/4025), offered Paypal to launch a PYUSD stable on the TRON network.
Paypal is lucky for scam offers After all, PYUSD was supposed to be released back in 2022 on Solana with the support of FTX (https://t.me/c/1597252347/2561)."
Huobi .... Justin Sun goes for broke, and tries to somehow change the trajectory of his flight to court:
"Justin Sun, the owner of Huobi Bankrupt (https://t.me/c/1597252347/4025), offered Paypal to launch a PYUSD stable on the TRON network.
Paypal is lucky for scam offers
After all, PYUSD was supposed to be released back in 2022 on Solana with the support of FTX (https://t.me/c/1597252347/2561)."
It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.
As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.
In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.
Quote
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name). The crypto industry needs to get rid of centralized exchanges and their shady CEOs. DEX are the future. Cold wallets are the future. I don't think that USDT will face difficulties because of this case. Huobi might have to shut down, but who cares at this point(except the people, who have money in Huobi). The crypto world will survive without another centralized exchange platform.
I also expect Binance to shut down at some point. The crypto winter will continue in 2024, but the bull run in 2025 is going to be huge.
Decentralized exchanges have some problems that do not fit well into the regulatory policy of market regulators. For example, on a decentralized exchange, it is impossible to block an account on demand, request data on transactions of a particular user, etc. actions that work in case of "special situations" or for "special persons". Therefore, in my opinion, they will be in disgrace, or at least with a bunch of restrictions and rules that will nullify all the advantages of decentralized exchanges
Just like you, people use it for exchange and trading purposes, no one says they are leaving their money on Huobi or centralized exchanges.
There are people who think that CEX gives them more security than personal wallets. And I am not saying it just because I think that people think this way, it's because I have seen people do it and say it. I have a friend who does the same. He thinks that if anything happens to the CEX, its owner will compensate the lost amount somehow. He said it to me on his own. I tried to explain how dangerous it is and yet he wants to HODL his assets in CEX. Not for trading purposes but just to keep his assets safe. So here you go. There are people like this.
Now for the trading. You should only trade and invest what you can afford to lose right? If you are doing that, then there's no problem. If it's lost, then that won't matter that much. You will learn a lesson from that instead. But when you are hodling and want to keep your assets safe, then CEX is not the best option. It never was and never will be. Hope you got my point. People are staking in Huboi Exchange. Not trading to be exact. So that brings a huge red flag.
Oh man, these owners of the exchangers and their dreams of getting rich quickly killing the market very quickly. Why would that man invest the money from one business to another business, it's a mystery? I think he had plans to build another empire, get the returns back from that business and then again return the money to the Huobi so that instead of buying the bonds he would just return the money plus earned profits to the users.
Huobi does not have good reputation in cryptocurrency centralized exchange and they faced with risk from China mainland government too. I don't choose Huobi to use when I have other centralized exchanges with less negative reputation and if I don't like KYC, I can pick non KYC exchange.I have small capital in cryptocurrency so I don't have big issue with DEXs.
https://kycnot.me/
I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name).
Justin Sun likes pump and dump games which initiated by him several times. From announcing a lunch with Waren Buffet to some events when they tried to pump TRON and TRON stable coin. The most fearful thing from his stable coin is it uses algorithm that is what killed Terra stable coin UST in May 2022.Months later, many stable coins lost their pegs including TRON stable coin but Justin Sun successfully protected the peg. However, I would like to remind that back in 2022, marketcap of TRON stable coin is very small so it was a bit easy for Justin Sun to recover the peg. Things can be very different in future when the marketcap is bigger and out of control from Justin Sun. That stable coin will possibly face with similar peg attack like Terra UST and lose its peg.
Oh man, these owners of the exchangers and their dreams of getting rich quickly killing the market very quickly. Why would that man invest the money from one business to another business, it's a mystery? I think he had plans to build another empire, get the returns back from that business and then again return the money to the Huobi so that instead of buying the bonds he would just return the money plus earned profits to the users.
There is no other way this is not his thinking while making such a big step. The balance sheet is available for the public and no wonder they knew what they were doing. This is so bad for every business if you are going to mix up the money just like that. I don't really get how this was allowed by the stake holders in the Huobi.
There is no other way this is not his thinking while making such a big step. The balance sheet is available for the public and no wonder they knew what they were doing. This is so bad for every business if you are going to mix up the money just like that. I don't really get how this was allowed by the stake holders in the Huobi.
Quote
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name). The crypto industry needs to get rid of centralized exchanges and their shady CEOs. DEX are the future. Cold wallets are the future. I don't think that USDT will face difficulties because of this case. Huobi might have to shut down, but who cares at this point(except the people, who have money in Huobi). The crypto world will survive without another centralized exchange platform.
I also expect Binance to shut down at some point. The crypto winter will continue in 2024, but the bull run in 2025 is going to be huge.
if anyone is interested where did the rumour started:
original
https://hk.investing.com/news/economic-indicators/article-366758
translate to english
https://hk-investing-com.translate.goog/news/economic-indicators/article-366758?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp
Better avoid Justin Sun because he has been has been running ponzi schemes.
original
https://hk.investing.com/news/economic-indicators/article-366758
translate to english
https://hk-investing-com.translate.goog/news/economic-indicators/article-366758?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp
Better avoid Justin Sun because he has been has been running ponzi schemes.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Its becoming scarier even more with the way things are turning out on USDT and I don't know why USDT decided to give one man monopoly to play with a stable coin that is having lots of critism. At times, I get scared of how Justin Sun deposits into Binance make the news all the time, there are lot of many other institutions that makes big deposit to Binance without making a single news but Sun is always ahead and that is even bad of crypto, one man cannot control those millions, maybe its high time we take precaution with stable coins, another Do kwon might be on the pipeline.
Crytpo has been between few people and I don't find it interesting because if you remove Binance, Kraken, Coinbase, Okex from cryptocurrency, only few will be left and by this, money is only ciirculating between this circus people, but when losses happen, it affect everyone because they don't have their coins under their study, it is the exchanges that control half of the money we have in crypto, we need to cut this tie.
Absolutely agree with you, the problems and the CONSEQUENCES can be quite sad.
A blow to USDT is a blow to all stablecoins, as it can start a chain reaction that will lead to excess liquidity and lack of liquidity in bitcoin, for example, due to withdrawal of funds from stablecoins.
And the collapse of its one CRUCIAL exchange - this is an increase in the concentration of money in fewer hands owning the remaining exchanges - is an additional risk, because the growth of "available assets" will be more provoking to illegal schemes and actions. You understand perfectly well what volumes of assets are in the hands of exchanges
I also discovered that Justin Sun was linked to the curiosity of the public a few weeks ago with its Tron project. Some people on twitter are suspicious about the tron network version's BTC token parked in a lending protocol seem unbacked. Here the news.
I don't know if this actually has anything to do with this guy, but there's no way he doesn't understand something because damn that's a huge number (60k btc tokens).
I don't know if this actually has anything to do with this guy, but there's no way he doesn't understand something because damn that's a huge number (60k btc tokens).
I don't think this will have a negative impact on USDT in the long term and globally,
Probably not but it could create a small spark that will affect the current condition therefore it might affect it in longer term as well. As of now USDT is no longer at exactly $1 peg or atleast close to $0.999 or something so this has shaken up the market unconsciously ( $0.9984 at the time of writing and chart is showing that it dip a bit earlier today ). Anything that affects USDT will affect crypto market as a whole as well because most people are currently holding USDT compared to the other stable coins
Not your key, not your coin. Why don't people understand this? Everything that is centralized is a piece of shit. Even those that are in the top 3. I still don't trust them 100%. When others have control over your assets, anything could happen to them. So I don't wanna hand over my asset's control to someone else. This is a direct red flag for the Huboi exchange. Why are people still using it? Do they not know about it yet or they are just ignorant?
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
Just like you, people use it for exchange and trading purposes, no one says they are leaving their money on Huobi or centralized exchanges. But to say we shouldn't use it at all I would doubt it because if you are a trader. How will you make money without using centralized exchanges? None of us trust them 100%, but do we have any other choice not to use them? While we wait for DEXs developers to improve their exchange, we will still have to depend on CEXs if we want to make money in this market.
Justin Sun is destined to be doomed. He is secretly cashing out money from his scam USDT using his Huobi exchange and other project connected to him. He was once caught cheating on his own giveaway sponsored to Binance.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
Their reason for setting up their business is to make a profit. Launchpad pump and dump of newly listed tokens are ways the exchanges are milking their customers heavily, as I believe they are always the higher players in that game.
For Justin, his means of exploiting the crypto industry are just increasing day by day. I just hope it doesn't crash the entire tron chain some day and put a lot of people under a heavy loss, as that will really be bad for the entire crypto market, adding to all the negative news happening around crypto exchanges.
Not your key, not your coin. Why don't people understand this? Everything that is centralized is a piece of shit. Even those that are in the top 3. I still don't trust them 100%. When others have control over your assets, anything could happen to them. So I don't wanna hand over my asset's control to someone else. This is a direct red flag for the Huboi exchange. Why are people still using it? Do they not know about it yet or they are just ignorant?
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
people will only learn their lessons once they lost big chunk of money. so don't expect everyone to follow the protocol of not storing coins inside a CEX. they always do up until that exchange is down or out of business.
with possible scenario of FTX or not, people should always secure their coins by not leaving it in exchanges for long, if they are not seeing themselves to execute a trade very soon.
Not your key, not your coin. Why don't people understand this? Everything that is centralized is a piece of shit. Even those that are in the top 3. I still don't trust them 100%. When others have control over your assets, anything could happen to them. So I don't wanna hand over my asset's control to someone else. This is a direct red flag for the Huboi exchange. Why are people still using it? Do they not know about it yet or they are just ignorant?
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.
Is there any coin to watch out for? Like what to sell of before anything else? Because apparently it could really affect a lot of people especially those who have been investing in something.
I think people can start selling off or withdrawing their assets from Huobi to be safe right?
Maybe it's time for shorting? Not financial advice
I think people can start selling off or withdrawing their assets from Huobi to be safe right?
Maybe it's time for shorting? Not financial advice
Yes, if the information is now officially confirmed - the mass "escape" from the exchange and withdrawal of funds - is guaranteed. And there will be a very delicate situation - if the assets on cold/hot wallets of the huobi exchange are not enough to cover the demand, this will really lead to the same blow to the crypto market, as we had an example of the recent collapse of another exchange. And what is very bad - Huobi is not a third-rate, local exchange, and this will cause an increase in distrust of cryptocurrency and crypto exchanges in general. In today's situation - it will be clearly not the best event, when the prospects of cryptocurrencies are already not the most stable. At the very least, it may increase the pressure of regulators and/or introduce stricter rules for the market, which obviously will not add to the attractiveness of cryptocurrency either
I don't think there is a need to underline it another time... but this is another clear proof of always being careful when using exchanges for staking / holding crypto.I hope that much of this is speculation regarding this exchange will not arm anyone and no user funds are at a risk.
Justin Sun is destined to be doomed. He is secretly cashing out money from his scam USDT using his Huobi exchange and other project connected to him. He was once caught cheating on his own giveaway sponsored to Binance.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the
DrBeer you really a good doctor means you really did a good research if it is not taken from some source if yes then source links are must. either way to prove the credibility you should add some source links. I hope you will not mind my words. I think Houbi is under great pressure here. And if things go side ways then we might see another big dump but it will be a good opportunity for all buyers of BTC who are still holding a hell lot of fiat just to take god entry.Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the
Even one of my friend was asking me to take entry in market and he was asking when should i take one. My guts are telling my that market will take a dump before 2024 so, i tell him the same but i also told him that its just guts so you have to DYOR. as i am not a perfect trader. But he wanted to hold BTC so i advice him accordingly.
Overall, point is, this is a big threat crypto too, Justin sun was already many times arrested or sued by authorities and his behavior has lifted one of my friend's interest from Tron. When Justin sun lastly punished by authorities to manipulate the price of Tron along with 12 celebrities.
Thanks for the assessment. Unfortunately I can't provide any links to official information right now, they just don't exist. But there is information from the outside... But as they say, there is no smoke without fire.
To be honest, until today I didn't know about the "specific scheme" implemented on the Huobi exchange, with "collateral" USDT and ETH and pseudo-tokens stUSDT/stETH, but it really seems quite dubious to me, especially given the information about the misuse of these funds. At the same time USDT became a "hostage of the situation", as the amount was notable.
I don't think this will have a negative impact on USDT in the long term and globally, but there could definitely be some problems in the short term. ETH will not suffer so much, because the amount of "borrowing" in ETH is not that significant.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
That's a bad news for crypto industry, i hope things will not become bad due to this. You have made a good post here and it is really a good point which we all should keep in mind before taking entries into market. Overall, Justin Sun is also a very greedy person he did some foolish acts before which caused him to pay huge fine as punishment. Unexpected news:
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Balance that has dropped from 700$ million to $90 million only in a month is a huge alert for all of us. I hope people will not panic and will not start to withdraw there funds from this exchange because once people got panic then this exchange is gone and it will be another exchange going down but leaving some bad impact on the market and another slight or i think big dump in the market too.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the
DrBeer you really a good doctor means you really did a good research if it is not taken from some source if yes then source links are must. either way to prove the credibility you should add some source links. I hope you will not mind my words. I think Houbi is under great pressure here. And if things go side ways then we might see another big dump but it will be a good opportunity for all buyers of BTC who are still holding a hell lot of fiat just to take god entry.Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the
Even one of my friend was asking me to take entry in market and he was asking when should i take one. My guts are telling my that market will take a dump before 2024 so, i tell him the same but i also told him that its just guts so you have to DYOR. as i am not a perfect trader. But he wanted to hold BTC so i advice him accordingly.
Overall, point is, this is a big threat crypto too, Justin sun was already many times arrested or sued by authorities and his behavior has lifted one of my friend's interest from Tron. When Justin sun lastly punished by authorities to manipulate the price of Tron along with 12 celebrities.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Its becoming scarier even more with the way things are turning out on USDT and I don't know why USDT decided to give one man monopoly to play with a stable coin that is having lots of critism. At times, I get scared of how Justin Sun deposits into Binance make the news all the time, there are lot of many other institutions that makes big deposit to Binance without making a single news but Sun is always ahead and that is even bad of crypto, one man cannot control those millions, maybe its high time we take precaution with stable coins, another Do kwon might be on the pipeline.
Crytpo has been between few people and I don't find it interesting because if you remove Binance, Kraken, Coinbase, Okex from cryptocurrency, only few will be left and by this, money is only ciirculating between this circus people, but when losses happen, it affect everyone because they don't have their coins under their study, it is the exchanges that control half of the money we have in crypto, we need to cut this tie.
Is there any coin to watch out for? Like what to sell of before anything else? Because apparently it could really affect a lot of people especially those who have been investing in something.
I think people can start selling off or withdrawing their assets from Huobi to be safe right?
Maybe it's time for shorting? Not financial advice
I think people can start selling off or withdrawing their assets from Huobi to be safe right?
Maybe it's time for shorting? Not financial advice
That's why when I've seen that stUSDT on the tron network, I didn't put any interest on knowing it more. I'm a noob on that part and have that impression that it's just like the Luna thing.
Well, it won't be a surprising thing when withdrawals comes through rushing on them and they won't be able to process the quickness of it and then will turn into delay in withdrawals and much worse halt all of it.
Well, it won't be a surprising thing when withdrawals comes through rushing on them and they won't be able to process the quickness of it and then will turn into delay in withdrawals and much worse halt all of it.
The following news was released on forklog today:
Huobi has failed to show a net profit for the past four quarters, but expects to break even in October-December. This was reported to The Block by Tron co-founder Justin Sun, who is credited with controlling the bitcoin exchange.
He did not cite specific values. Sun acknowledged that Huobi spent "too much" on marketing, advertising and salaries, but by now the platform has optimized costs.
With the exception of the previous four quarters, the exchange's operations since its launch in 2013 have been profitable, he added.
https://forklog.com/news/dzhastin-san-priznal-ubytochnost-huobi
Huobi has failed to show a net profit for the past four quarters, but expects to break even in October-December. This was reported to The Block by Tron co-founder Justin Sun, who is credited with controlling the bitcoin exchange.
He did not cite specific values. Sun acknowledged that Huobi spent "too much" on marketing, advertising and salaries, but by now the platform has optimized costs.
With the exception of the previous four quarters, the exchange's operations since its launch in 2013 have been profitable, he added.
https://forklog.com/news/dzhastin-san-priznal-ubytochnost-huobi
This case has some similarity like FTX where Sam Bankman Fried lied to their customers, but the difference is Huobi not get hacked, while FTX does.
It's really sad if Huobi is become a scam exchange because they never get hacked, they have a good record even though they're not able in the top 3 exchanges. Binance only sell USDT that linked with Tron network, so USDT will not collapse yet.
My answer: just one less exchange.
It's really sad if Huobi is become a scam exchange because they never get hacked, they have a good record even though they're not able in the top 3 exchanges. Binance only sell USDT that linked with Tron network, so USDT will not collapse yet.
My answer: just one less exchange.
If this is turns out to be true, it will be another cryptocrisis, it will not be as big as FTX since Huobi is not even on the top 10 Exchange, but still Huobi is not a small exchange it will have significant impact on the market. But all of that if the rumor was true, until I write this reply the only news I got is this https://www.cryptopolitan.com/huobi-and-tron-executives-allegedly-arrested/ and it only based on the twitter thread by Adam Cohran. This is not the first time Huobi executive has been allegedly arrested, but the previous allegation has been denied, so I would still be skeptical.
The waves of problems on Binance have not subsided, as it started with Huobi ...
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
Unexpected news:
-Huobi top executives and TRON developers arrested in China.
-Binance has started a massive sell-off of USDT.
-USDT has been in a mild deprivation for a week now.
-Huobi's balance dropped from $700 to $90 million in a month. -The Merkle Huobi tree (a balance sheet publication introduced after the FTX crash) hasn't been updated in a month.
Steaking USDT with a 4.29% yield is the main source of the problem.
What is the essence of steaking
You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.
He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.
This is also the case with ETH. Sun has turned them into stETH. Users think there are 141,000 ETH on the balance in Huobi, but no.
New cryptocrisis or just 1 less exchange on the market ?
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