After FTX’s bankruptcy, Huobi joined the exchanges that shared proof of reserve to regain investor confidence. The exchange has BTC, ETH and USDT as well as meme tokens like DOGE and SHIB.
Huobi shared that it has $3.5 billion in reserves: DOGE, SHIB, ADA
As you follow on Kriptokoin.com, major centralized exchanges such as Binance, Bitfinex and OKX have publicly shared their proof of reserve throughout the week in the name of a more transparent market. 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), worth $900 million. Here are the conclusions from the reserve report released on Sunday to assure reassurance that their funds remain safe:
- 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.
#Huobi's Work Report on Asset Transparency (I)
🔥#Huobi is acting now to disclose the balance details of our hot and cold wallets and make this disclosure a routine going forward.
👇— HTX (@HTX_Global) November 13, 2022
The report shows that the total estimated value of the reserves is $3.5 billion. Exchanges had to release this data after FTX’s bankruptcy. FTX was disclosed in a CoinDesk report showing that the balance sheet of its sister company Alameda Research consists mainly 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 for allegedly transferring 10,000 ETH to Binance and OKX wallets after releasing its reserves. Blockchain researcher Colin Wu says Huobi’s reserves shrank after the data was released.
Huobi reported that it will add a supplement within 30 days to further increase user confidence. Promised to publish another Merkle Tree Proof of Reserve audit conducted by a third party. Under the Merkel Tree audit, an independent organization takes 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 failed to calm the nerves 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. Data 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.
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