Tron founder Justin Sun addresses and dismisses rumors of Huobi’s troubles, affirming both platforms’ prosperous future.
- Tron founder Justin Sun dispels rumors about Huobi’s troubles, assures both Tron and Huobi’s thriving future.
- Rumors surfaced of Huobi facing liquidity issues and executives’ detention, leading to outflow of $64 million.
- Speculations caused volatility in Huobi Token (HT) price before stabilizing around $2.66.
- Sun dismisses rumors as FUD, expresses confidence in Tron and Huobi’s development, vision, and community efforts.
Rumors regarding the Chinese cryptocurrency exchange Huobi facing severe problems and the alleged detention of some of its executives have been addressed by Tron founder Justin Sun. He urged people to ignore the speculation and assured them that both Tron and Huobi will thrive in the future.
Exclusive: Recently, a large number of senior executives of offshore cryptocurrency exchanges, such as CTO CHO, have been detained and investigated by the Chinese police for allegedly providing fund payment and settlement services for gambling websites.
— Wu Blockchain (@WuBlockchain) August 5, 2023
The Outcome of the Rumors
Reports emerged recently suggesting that Huobi was experiencing liquidity issues, with some of its personnel being arrested and questioned by law enforcement agents. Chinese reporter Colin Wu shared on Twitter that the Chinese police had detained and investigated senior executives of offshore crypto marketplaces for allegedly providing fund payment and settlement services for gambling websites.
As a result of these rumors, Huobi witnessed a significant outflow of $64 million over the weekend, causing the total value locked (TVL) on the exchange to drop below $2.5 billion. This represents a 20% decrease compared to the beginning of July when the TVL stood at $3.13 billion. Bitcoin (BTC) makes up approximately a third of this TVL, followed by Tron’s native token (TRX) and Huobi Token (HT) with 26.5% and 20.3% respectively.
Moreover, the speculations triggered considerable volatility in the price of HT, with the token experiencing ups and downs over the weekend before stabilizing around $2.66.
Justin Sun dismissed the rumors surrounding Huobi as FUD (Fear, Uncertainty, and Doubt). As a Global Advisor at Huobi, Sun expressed his confidence in both Tron and Huobi, emphasizing their continuous development and the trust in their vision and community efforts for a stronger future. In a tweet, Sun said, “Ignore FUD, keep building! #TRON and #Huobi will thrive through continuous development. Trust in our vision and community efforts for a stronger future. Perseverance guarantees success!”
Many users on Twitter used the number “4” to comment below Sun’s post, following the lead of Binance’s CEO Changpeng Zhao, who often uses the symbol to dismiss reports as false.
Overall, Justin Sun’s reassurance aims to restore confidence in Huobi and dismiss the rumors circulating regarding its liquidity and personnel. It remains to be seen how the situation will evolve and how Huobi will recover from the recent outflows.