Amid a wide-reaching regulatory offensive against some of the largest cryptocurrency exchanges in the world, crypto trading platform Huobi seems to be dealing with a different (but not entirely unrelated) kind of trouble, which has seen its crypto reserves dwindle.
As it happens, the amount of Bitcoin (BTC) in Huobi’s crypto wallets has dropped from 410,000 BTC in 2020 to the current mere 26,000 BTC as its Ethereum (ETH) and Tether (USDT) balances are “also flatlining,” according to the observations shared by crypto market expert Willy Woo in a tweet on July 5.
Specifically, in Woo’s words:
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“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 [(2020)] now only 26,000 BTC left. ETH and USDT balances also flatlining.”
SEC’s role in declining balances
Indeed, cryptocurrency exchanges have observed a significant decline in their reserves after the United States Securities and Exchange Commission (SEC) increased its regulation by enforcement strategy in the sector, culminating in lawsuits against Binance and Coinbase.
Not long after, the balance of the flagship decentralized finance (DeFi) asset on exchanges dropped to a three-year low, following a massive outflow of more than $2 billion in Bitcoin leaving crypto exchanges in a single week, as Finbold reported on June 22.
As Woo further noted, the web traffic to Huobi was also “taking a decent hit,” dropping from 30.2 million visits in March to a mere 7.2 million in May, indicating a decline of 36.93% in visits during the previous month, as well as a whopping 76.16% drop over the course of two months.
Meanwhile, Huobi’s native token HT is changing hands at the price of $2.70, recording a 93.17% drop from its all-time high (ATH) of $34.66 it had reached on May 12, 2021, as well as declining 0.71% in the last 24 hours, 0.47% across the previous week, and 6.12% on its monthly chart, as of the July 7 data.
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