Rumors about the explosion of the Bitcoin exchange and the strong increase in activity in Justin Sun’s wallet raise questions.
Bitcoin exchange transferred money
According to a series of recent transactions, Justin Sun received $200 million from the Binance exchange into his personal wallets. With rumors about Huobi’s troubled situation rising in the background, there is a flurry of transactions. Justin Sun is officially affiliated with Huobi. In December, Justin Sun withdrew $1.1 billion from various exchanges, causing panic among some Huobi users and investors as the main rumor in the space was that Sun was using personal funds to support the cryptocurrency exchange’s solvency. The situation was exacerbated by the fact that Huobi China laid off its staff and re-contracted with Huobi Global to ease the current pressure on the company. In addition, all bonuses were canceled and a large part of the staff was laid off.
? Justin's $1.1B withdrawal:
– It was speculated that this was used to fund Huobi's operations
– Likely untrue, the amount is way too large to cover burn rate
– Even Twitter running at its most wasteful state only burns at $4mil/month
– Whispers of him cashing out— Rock ? (@DataaRocks) January 6, 2023
The $200 million reportedly withdrawn from Bitcoin exchange Binance has only fueled speculation about the potential bankruptcy of Huobi. At the same time, spreading FUD would not be the most logical thing to do at the moment, given the lack of evidence underlying the thesis about Huobi bail. First of all, Huobi is not losing as much money as one might think. The amount withdrawn by the Sun in December is enough to help Huobi survive for at least a few months. The $200 million withdrawn today will make the cryptocurrency exchange even more resilient, although this is not necessary. The most likely reason for this may be due to Sun’s desire to cash out some of its assets to preserve more liquidity rather than bail out a large stock market with its personal funds.
Huobi token drops
Huobi Token, the native token of Chinese crypto exchange Huobi Global, has dropped nearly 9% in the past 24 hours after reports of internal strife surfaced on social media. cryptocoin.com As we mentioned, the trading volume of the crypto exchange has also dropped 23% in the last 24 hours. Earlier this week, it was reported that Huobi Global is asking its employees to receive salaries in stablecoins instead of fiat currencies, and if employees refuse, they can be fired from the company. Now, the crypto exchange is reportedly blocking all internal communications groups in an attempt to quell the riot. Publish these reports, Huobi Global’s trading volume and the value of its native token have dropped sharply. Huobi Token is trading at $4.34, down 9%. The token has dropped about 30% in the last 30 days.
Wu Blockchain reported earlier this month that Huobi Global is looking to lay off a large number of its employees. Today, Justin Sun confirmed to Reuters that Huobi will lay off 20% of its staff. In an internal memo sent to Huobi staff, Justin Sun said they were ‘like on fire in this crypto winter’. However, he did not comment on the internal conflict reports on the exchange. Led by Justin Sun, Tron’s algorithmic stablecoin USDD also appeared to depeg yesterday. Stablecoin dropped as low as $0.9754.
