$60M Withdrawn from Huobi in 24 Hours
SEYCHELLES – On-chain data suggests crypto exchange Huobi is in a vulnerable position with $60 million being withdrawn in the last 24 hours, according to on-chain data from Nansen (pictured below). The highest withdrawals came from ETH, USDT, and USDC.
Source: Nansen.ai
According to tokenomics data from CryptoQuant, the Huobi Token (HT) is considered the “dirtiest” by traders because, of all exchange tokens, HT relies the most heavily on its stablecoin to mitigate volatility. Huobi also holds 81% of its circulating supply. These two factors have led traders to exit the exchange en masse.
Huobi board advisor Justin Sun has deposited $100 million of his own money to supplant the withdrawn liquidity, according to Sun's wallets on Etherscan. Sun appears hopeful that the crisis will abate tweeting, “Ignore FUD and Keep Building”.
Rumors that Huobi would lay off a large portion of staff were confirmed on Friday by Reuters. Sun previously remarked in an interview with the South China Morning Post that the plan to downsize was “untrue”. Friday Sun confirmed that Huobi will cut 20% of its staff due to the company’s financial woes.
