Justin Sun Counters Withdrawals by Moving $100M in Stablecoins to Huobi Exchange
The scrutiny of the Huobi exchange by blockchain data analytic firm Nansen revealed a huge inflow of stablecoins. The detailed assessment trailed the $100 million stablecoins withdrawn by crypto mogul Justin Sun from Binance as sent to Huobi.
The $100 million inflow is timely, given the Huobi exchange battling massive withdrawals following news of looming headcount reduction. Nansen observed that the inbound transactions by the Tron founder were concluded following the viral news of Huobi cutting staff.
Nansen highlighted that Sun has a majority stake in Huobi, thereby a reason for moving the money in Tether (USDT) and USD Coin (USDC).
Explaining Personal Funds Injection
An independent assessment by Bloomberg indicated that Sun’s reason for injecting personal funds into the exchange is to boost confidence in the crypto exchange. In support, Nansen’s executive Martin Lee tweeted that Sun targeted increasing withdrawals and maintaining confidence levels amongst the Huobi exchange users’.
Lee highlighted that Huobi witnessed huge withdrawals with a net weekly outflow of $94.2 million. The further breakdown into the outflow indicates that $60.9 million were withdrawn from the Singapore-based exchange in the last 24 hours.
Huobi Battling Huge Challenges
Huobi ranks fourth among the global digital asset exchange platforms. While the Singapore-based exchange realizes a daily trading volume exceeding $370 million, it could have been facing severe financial challenges for weeks. Earlier on January 7, leading media channels revealed plans to cut its workforce by 20%. Colin Wu, a leading crypto journalist, illustrated that Huobi paid staff salaries using stablecoins. The news conveyed in the last week of December 2022 triggered protests from the staff.
Sun dismissed the speculations regretting that ill motives are prompting individuals to spread fear and uncertainty around Huobi. In a January 6 Twitter, Sun lamented the timing of the speculations as they aggravated fear and uncertainty when crypto exchanges portray shaky confidence.
Speculators Leveraging Crypto Market Volatility
Sun warned that the crypto market is both volatile and uncertain. He lauded Binance for reassuring clients of the finances’ safety in a statement conveyed on December 22.
Sun waded into the spectacular collapse of FTX, citing mismanagement by an inexperienced group. The Tron founder echoed FTX’s chief executive John Ray’s view that overseeing the bankruptcy restructuring will involve weeding out the individuals who mismanaged the users’ funds.
Sun confirmed Tron’s plans to leverage the network’s decentralized stablecoin to link the Web3 ecosystem with the real world. He added that its success relies upon the entire crypto ecosystem recovering as most firms and tokens are still reeling since the FTX implosion.
Editorial credit: Sergei Elagin / Shutterstock.com
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