Investors Are Quickly Withdrawing Their Coins From This Bitcoin Exchange!


On-chain data shows that more than $60 million of tokens have exited the Bitcoin exchange in the past 24 hours, while stablecoin reserves have dropped 9.5% in a week.

Bitcoin stock market crash

The on-chain data shows that investors may be skeptical about the continued health of Huobi. The exchange, which saw turbulent trading during Asian hours for the HT token after confirming that the number of employees decreased by 20%, has experienced $ 64 million in the last 24 hours. According to Nansen data, this puts the number of weekly releases above $100 million, compared to $22 million at rival Kraken. Nansen notes that the highest outflows come from the high-balanced stablecoin USDT, USDC, and ether (ETH) wallets.

Meanwhile, Justin Sun, who is on Huobi’s advisory board, sent $ 100 million to the stock market. On-chain research house Look On Chain said that in the past wallets tagged as Sun have withdrawn $100 million in USDC and USDT from Binance, with Etherscan data showing funds transferred to Huobi.

The decline continues

Sun tweeted that the key to Huobi’s success is ‘Ignore FUD and Keep Building’.
Prior to the influx, Huobi’s stablecoin balance was $681 million, down 9.5% in a week, the data shows. A sharp increase in stablecoin exits from FTX occurred before that exchange crashed last November. “Huobi seems very vulnerable right now,” said Ki Young Ju, CEO of analytics firm CryptoQuant. Ju noted that Huobi’s Bitcoin (BTC) reserves fell by 90% last year, while Binance’s more than doubled. According to CryptoQuant, Huobi’s active user addresses have also dropped significantly. One report stated that ‘Huobi’s user activity is 44 times lower than the peak in May 2019 and 20 times lower than Binance as of January 3, 2023’. Of particular concern during this stress test is the health of the Huobi token (HT).

As CryptoQuant pointed out in a recent report, of all exchanges, Huobi has the ‘dirtiest’ reserves that are most dependent on the exchange token. OKX and Deribit said the cleanest. Nansen states that Huobi holds 81% of the circulating supply, or 131.6 million of the 162.2 million of the HT token. According to CoinGecko data, the token’s 24-hour trading volume was just $21 million, compared to a market cap of $770 million. According to CoinGecko data, the +2% bid depth is also relatively tight when compared to other tokens with similar market cap. In a recent column, Kaiko’s director of research, Clara Medalie, pointed out that the lack of 2% bid depth is a major red flag for FTX’s FTT token.

Tron price is also in decline

The price of Tron (TRX), the 18th largest token by market cap, fell on Friday amid tensions from crypto exchange Huobi as the broader crypto market remained stable. Tron founder Justin Sun sits on Huobi’s advisory board. As we mentioned, TRX has decreased by about 8% in the last 24 hours. If the price breaks above and below a 5-cent support level, the tokens could drop as low as 3 cents, according to the price charts. Huobi’s native HT exchange tokens have lost up to 11% in the last 24 hours. Tron-based stablecoin USDD has effectively lost its intended anchor against the US dollar, dropping 3 cents. According to DeFiLlama data, such price action resulted in a 2% drop in the value locked in Tron-based decentralized apps.

As such, futures tracking TRX have seen liquidation below $1 million on exchanges, suggesting that the sale was mostly spot-focused. While spot refers to real tokens, futures are derivative financial instruments that allow investors to bet on the prices of the underlying tokens.
Meanwhile, security firm PeckShield noted on Twitter that crypto wallet addresses linked to Sun had moved over $50 million to crypto exchange Binance. The funds movements came amid speculation among Twitter users about Huobi’s overall health and the safety of client funds.


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