Things look grim for Huobi due to a hike in withdrawals from the platform. Users have shared fears regarding the centralized exchange’s solvency capabilities. A major reason behind such fears is reported suggesting layoffs to be conducted by Huobi. In addition, the crypto market has always been prone to rumors, making the situation even worse. Even now, Huobi stands among the top ten crypto exchanges in terms of volume.
Although Huobi does not compare to Binance or FTX in terms of sheer scale, the exchange losing solvency can stimulate another dip in the market. The exchange is similar to FTX in the sense that it also has a token attached to it. HT by Huobi has a market cap of 768 million dollars, which is trading 6% lower this week.
That is why the news that the platform witnessed withdrawals of over 61 million dollars on January 6 startled many enthusiasts. The sheer amount lost on the day accounted for 64% of the platform’s value.
It indicated a quick acceleration in withdrawals, followed by the news that Huobi has closed internal employee channels. Furthermore, some reports also state that the platform plans to relieve 20% of its staff. All crypto enthusiasts, in general, and Huobi users, in particular, are keeping a steady and close watch on Huobi reviews to learn more about its operations and reliability.
As soon as the news hit the market, Tron’s Founder, Justin Sun, transferred 100 million dollars of stablecoins to Huobi. Users suspected that the move was executed to help with the withdrawals or to maintain users’ trust in the exchange. The crypto community has been on edge ever since FTX, one of the biggest exchanges, went broke in November 2022. The collapse triggered a steep dip in the market, many compelling users to question exchanges. Even Binance, the biggest name among crypto exchanges, was not devoid of the trend.