Huobi Exchange: A Tale of Declining Reserves and Regulatory Obstacles
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.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
