A wallet associated with Tron founder Justin Sun has moved the $100 million stablecoin to crypto exchange Huobi. Following the move, a large buy wall appeared on Huobi Token.
Tron founder carrying coins?
A wallet associated with Tron founder Justin Sun has moved the $100 million stablecoin to crypto exchange Huobi. As security analysts PeckShield noted, there were two transactions of USDC and USDT that each moved $50 million. The wallet appears to be associated with Sun on Ethereum block explorer Etherscan. This means that the company running the explorer has on-chain reasoning to assume it owns the wallet. It also includes $16.5 million USDD (USDD), a collateralized stablecoin with which Sun is closely associated. It contained $2.5 billion worth of ETH at one point in its history.
One observer noticed that most of the funds came from Just Lend, a lending platform on Tron. It also found that it was sent to the wallet via Binance before going to Huobi. This happened at a time when Huobi was under close scrutiny. Sun reportedly bought the exchange through a brokerage firm. However, he denied this, claiming that he was only a consultant.
A $1 million buy wall has been created for HT
Regardless, there have been major changes at the company since then, including layoffs and the requirement to pay employees in stablecoins rather than fiat currency. These changes and rumors that internal communications may have been shut down have caused the Huobi Token (HT) price to drop. The token has dropped from $5.20 to $4.30 in the last 48 hours. However, the token later recovered and rose to $4.80.
Huobi Head of Global Sales James Hume said in a LinkedIn post that “most, if not all” of the rumors circulating were “totally false or inaccurate”. In this context, Hume said, “Our internal communication platform is not closed. It’s also running as usual with a few layoffs,” he wrote.
Following the transactions to Huobi, some exchange users noticed that a $1 million buy wall had been created for the token. This means that a trader is willing to buy a million dollars worth of HT at a certain price. Therefore, this creates a situation that will reduce the probability of the token falling below this value.
Huobi saw net output exceeding $60 million in 24 hours
Crypto exchange Huobi has seen net outflows of $94.2 million in the past seven days, according to Nansen data. $60 million (63.8%) of exits were recorded in the previous 24 hours. DeFillama’s data shows that the stock market’s exit in the last 24 hours has exceeded $ 70 million as of the time of writing. The data shows that the exchange saw significant inflows of $87.9 million on December 15 and $46.04 million on December 28. Since then, the firm has recorded over $200 million in exits.
According to Nansen, the highest outflows came from high-balance stablecoin addresses (USDT and USDC) and Ethereum (ETH) wallets. Meanwhile, Huobi confirmed its plans to lay off 20% of its staff as part of the ‘structural adjustment’ to be completed in the first quarter. Nansen said that Huobi’s native token HT has 81% of its circulating supply.
Tron founder denies rumors
cryptocoin.com As we reported, Justin Sun denied the rumors about the stock market. Sun said the key to the firm’s success is “Ignore FUD and Keep Building”. Meanwhile, a Twitter thread from blockchain analytics firm Arkham Intelligence claimed that Sun may also have issues with his wealth. According to the firm, on-chain data shows that Sun paid thousands of dollars to exchange and bridge stablecoins rather than redemption directly in Tron. Arkham added that Sun has no reason to do so as he has a corporate banking relationship.
Meanwhile, several analysts advised Huobi users to withdraw their money from the exchange. “At this point, no one should have money in Huobi,” BnkToTheFuture CEO Simon Dixon tweeted. Arkham Intelligence also advised exchange users to store their assets on tier 1 exchanges (Binance/Coinbase) or in self-custody wallets.