Huobi joined the midst of the exchanges sharing their proof of reserve to regain investor confidence in the wake of FTX’s bankruptcy. In addition to BTC, ETH and USDT, the exchange also has chest tokens such as DOGE and SHIB.
Huobi shared that it has $3.5 billion in reserves: DOGE, SHIB, ADA
Koindeks.com As you follow, major centralized exchanges such as Binance, Bitfinex and OKX have publicly shared their proofs of reserve for a more transparent market name during the week. Huobi reported that as of November 12, it has $3.5 billion in reserves. The biggest part of this is in its own token, Huobi Token (HT), which is worth $900 million. Here are the conclusions from the reserve report released on Sunday to provide assurance that their funds remain on faith:
- 191.84 million Huobi Tokens (HT) – $900 million
- 9.7 billion Tron (TRX)
- 820 million Tether (USDT)
- 274 thousand Ethereum (ETH)
- 32 thousand Bitcoins (BTC)
- Lower rates of ATOM, ADA, BCH, DOGE, DOT, MATIC, SHIB and ETC.
The report shows the total assumed value of the reserves to be $3.5 billion. Exchanges had to release this information after FTX’s bankruptcy. FTX was exposed in a CoinDesk report showing that the balance sheet of its sister company, Alameda Research, is primarily made up of FTT. Since then, crypto exchanges around the world have been scrambling to prove their reserves to users to ensure their funds are not diverted to other investments. On November 10, Binance released a list of its cold wallets and reserves, revealing $69 billion in crypto reserves.
Under fire in Huobi sharing reserves with borrowed funds
Huobi came to the fore today with the claim that it transferred 10,000 ETH to Binance and OKX wallets after releasing its reserves. Blockchain researcher Colin Wu says Huobi’s reserves shrank after the information was released.
Huobi has announced that it will add a supplement within 30 days to further increase user confidence. Another Merkle Tree Proof of Reserve check conducted by a third party has promised to publish. Under Merkel Tree control, an independent organization receives an anonymized snapshot of all crypto balances held by the exchange. It collects them in a Merkel tree, a structure normally used to check the integrity of block data.
However, Huobi’s statement could not calm the limits of the market. The HT token is currently trading at $4.26, down 2.1% in the last 24 hours. It turned out that the exchange saw an outflow of 10,000 ETH after publishing its reserve report. Information from South Korea-based blockchain analytics firm CryptoQuant shows that a total of 12,000 ETH ($15.14 million) has left Huobi in the past six hours.