Huobi Exchange: A Tale of Declining Reserves and Regulatory Obstacles
![Huobi Exchange: A Tale of Declining Reserves and Regulatory Obstacles](https://coinspress.com/wp-content/uploads/2023/03/huobi-global-915x600.png)
Huobi, a cryptocurrency exchange, is facing challenges with reserves and trading volumes, causing pressure on the company.
Crypto analyst Will Woo described Huobi as a “slow-moving train wreck” with declining collateral since 2020.
Huobi’s Bitcoin balance has declined by 93.6% from 410,000 BTC in 2022 to 26,000 BTC. Ethereum and Tether balances are also stagnant.
Huobi exchange looking like it’s a slow moving train wreck, nearing its final throws.
Collateral has been draining since 2020. #Bitcoin balance down from 410,000 BTC (2022) now only 26,000 BTC left.
ETH and USDT balances also flatlining. pic.twitter.com/aG06VyBlJp
— Willy Woo (@woonomic) July 5, 2023
Web traffic and engagement for Huobi have dropped by 76%, with most visitors coming from Russia, India, Korea, and Ukraine.
Due to non-compliance, regulatory pressure has forced Huobi to shut down in multiple countries.
According to CoinGecko, Huobi is ranked 18th in daily volume at $368 million, with 608 tokens and 722 trading pairs. The exchange recently delisted tokens paired with Justin Sun’s USDD stablecoin.
READ MORE: US Claims Less than 10% of Bitcoin Trading Volume, Falling Behind Global Market
KuCoin also faced difficulties after implementing KYC regulations. Huobi’s native token, HT, has declined by 6% in the past month and almost 25% in the past three months. It is down 93% from its all-time high of $39.66 in May 2021.
Exchange tokens, including HT, have been affected as the U.S. Securities and Exchange Commission labeled them securities.