Unofficially but de facto owned by Justin Sun cryptocurrency A new report has been published on the reserves of the stock exchange Huobi.
The article published by X-explore addresses concerns about the validity and transparency of Huobi’s assets.
It touches upon the events leading up to a bankruptcy on centralized exchange FTX, and how other exchanges publish their own asset information to prove that user assets have not been misused.
How Are Huobi’s Reserves?
The article mentions that Huobi has yet to fulfill its promise to complete the 100% margin Merkle tree reserve proof and make it public within a month.
The article also evaluates Huobi’s assets against a checklist and identifies a significant risk due to a high percentage of illiquid assets (50.4%) valued at $1.84 billion.
These include $1 billion as HT token, the platform coin issued by Huobi, $980 million as XCN token, $530 million as TRX token, and $116 million as BETH token.
The article states that this high proportion of illiquid assets poses a significant risk as it can be difficult to liquidate these assets quickly in the event of a market downturn or other market conditions.
The article continues to analyze more specific risks, such as the overestimation of a large portion of the assets in the HECO chain and the fact that $300 million of TRX assets are personal assets of Justin Sun, who recently bought a stake in Huobi.
The article concludes by declaring that HT Token is in a bearish trend and BETH issued by Huobi is in an uptrend, but it is important to note that this should not be taken as investment advice.
*Not investment advice.
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