Is Huobi In Trouble? Whale Deposits Raise Questions About Exchange's Future

On-chain data reveals that a so-called "whale," made two significant deposits into the Huobi exchange, enhancing its reserves of Tether USDT/USD and Ether ETH/USD.

This prominent entity initiated a transfer of $200 million USDT early Tuesday and subsequently deposited 5,000 Ether, estimated to be worth $9.15 million, Coindesk reported.

While there's speculation around the identity of the whale, a representative from Huobi clarified that the address "does not belong to [Tron founder] Justin Sun."

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The address is recognized as one of the leading holders of the TRX/USD token.

Based on DeFi Llama data, these deposits have elevated Huobi's USDT holdings to a substantial $273 million. Additionally, Huobi possesses $400 million of USDT, a project endorsed by Sun and touted as the "first real-world asset protocol on the Tron Network," though its acceptance is still in its nascent stages.

However, these significant deposits coincide with a noticeable outflow from the Huobi platform.

Ethereum-based tokens worth $92.2 million have been withdrawn from the exchange, Nansen.ai data shows.

In total, a sum of $101 million has been moved across various blockchains during this period.

The withdrawal trend reportedly stems from the detention of Huobi executives in China, a claim that has been refuted by a spokesperson from the exchange.

In the midst of these developments, Huobi's HT/USD token has experienced a slight dip of 2%, currently trading at $2.62.

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