• Huobi, one of the leading cryptocurrency exchanges, is facing rumors of insolvency due to the alleged detention of some of its executives.
• Tron founder Justin Sun urged people to ignore these rumors and predicted that both Tron and Huobi will “thrive” through continued development.
• The speculation led to a multi-million dollar outflow from the exchange over the weekend, while total value locked (TVL) has dropped below $2.5 billion.
Rumors Of Huobi’s Insolvency
Huobi, one of the leading cryptocurrency exchanges, is facing rumors of insolvency due to the alleged detention of some of its executives by Chinese police. Chinese reporter Colin Wu tweeted on August 5 that a “large number” of senior offshore crypto marketplaces were under investigation for allegedly providing fund payment and settlement services for gambling websites.
Justin Sun Rejects Rumors
In response to this speculation, Tron founder Justin Sun urged people to ignore these rumors and predicted that both Tron and Huobi will “thrive” through continuous development. Despite his words however, Huobi faced a severe outflow of $64 million over the weekend, contributing to the overall decrease in total value locked (TVL) on the exchange which currently equals approximately $2.5 billion – a 20% drop compared to beginning July figure at $3.13 billion.
Total Value Locked On Exchange
Approximately one third of that stash is comprised of Bitcoin (BTC), whereas Tron’s native token (TRX) and Huobi Token (HT) take up about 10% each according to DefiLlama stats. Other tokens such as Ethereum Classic (ETC), Chainlink (LINK), Compound (COMP), Ethereum (ETH) etc., represent less than 5% each in terms TVL on HUOBI exchange platform.
Continued Development Predicted
Despite current speculation surrounding Huobi’s future prospects, Justin Sun predicted that both companies would continue to develop and thrive despite recent events saying: “Tron and Huobi will thrive through continuous development.” This would be good news for those who have their assets stored on HUOBI exchange platform or are planning on joining in near future as this could potentially provide greater security for users’ funds as well as more stable environment for trading cryptocurrencies long-term.
Conclusion
In conclusion it appears that despite current reports which suggest instability within HUOBI’s operations, Justin Sun remains confident in its future prospects predicting “thriving” growth over time with continued development efforts being made by both TRON Foundation and HUOBI themselves in order keep up with market demand effectively whilst also providing safe environment for customers store their digital assets securely..