I decided to withdraw almost all of my assets from one of the most famous exchanges, Huobi. The reasons for leaving the Huobi exchange will be discussed below. What happened with Huobi?
Reasons for my leaving the Huobi exchange
I want to write briefly about all the reasons that bother me.
- From October to December last year, Justin Sun cashed out $1.1 billion in USDC and BUSD through Paxos and Circle. Sun commented that this is an exchange operation between different stables.
- Justin Sun canceled all annual bonuses for employees, reduced the team by 40-50% and cut the salary of senior employees.
- On January 4, HR Huobi suggested that all employees switch to USDT/USDC salaries. Whoever refuses is fired.
- Singapore exchange Pionex has removed all Huobi market-making funds from its platform due to a gradual decrease in trading activity on the exchange.
- Finally, at 5 January Huobi closed internal employee communication groups and feedback channels.
In turn, Justin Sun quoted CZ: “ignore the FUD, keep building.” And then reminded that Huobi was founded in 2013 and pays great attention to security.
My assets after leaving the Huobi
On this exchange, I had about 10 coins. I always wrote that I am not a trader, I am a holder. In my opinion, this is one of the most profitable investments in crypto. To date, I have withdrawn all my assets from the Huobi exchange to a cold wallet, except for one coin. I kept the Huobi token.
I have a small amount of Huobi token. To my mind I believe that the exchange will be more successful than it was and its issues will be resolved. Moreover, I do not want to sell this coin at a loss.
Reductions of employees is a normal process for the current market. As for the stables, everything looks logical here too. As a result, BUSD launched on the Tron network.
It is confusing that Huobi has $2.8 billion in reserves, of which 52% is in HT, TRX and HBETH tokens, native tokens of the platform and Justin Sun. This is weak diversification.
After FTX, it would be wise to weather the storm and withdraw assets to wallets.
Disclaimer: This news is not investment advice. Assess the risks yourself before making any investment decisions.
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