Justin Sun Moves $100 Million To Huobi In Stablecoins Amidst Withdrawal Rush

Founder of Tron and crypto mogul Justin Sun moved stablecoins worth $100 million to Huobi after the announcement that the crypto exchange was reducing its workforce.

Nansen published blockchain data, which showed that Sun had withdrawn the cash from Binance and had then decided to shift to Huobi, as he has a majority stake in the crypto exchange.

The transfer

The $100 million in stablecoins were primarily in the form of Tether (USDT) and USD Coin (USDC). Sun himself confirmed that he had made the transfer of his personal funds to show his confidence in Huobi.

Martin Lee from Nansen tweeted that the transfer could be to boost confidence in the crypto exchange or to assist with the rise in withdrawals.

Nansen had also disclosed that huge amounts had been withdrawn from the Huobi exchange. The net outflow from the crypto exchange in the past week had been $94.2 million.

From this total, almost $60.9 million had been withdrawn in a single day. The Singapore-based exchange has been facing troubles lately.

It is the fourth-largest digital asset exchange in the market and has a daily trading volume of $371 million.

The reports

It had recently been reported by Reuters that the crypto exchange was laying off 20% of its staff, even though the rumors were denied by Sun.

Colin Wu, an independent crypto journalist, also reported last week that Huobi was using stablecoins for paying the staff salaries, which had resulted in employees protesting.

However, Sun as well as his team have repeatedly asserted that people are just spreading FUD (Fear, Uncertainty, and Doubt) about the crypto exchange.

On Friday, Sun took to Twitter to state that the crypto world is volatile and can be quite uncertain and ups and downs will always happen.

He added that it was easy to get caught up with the FUD that comes with being part of the crypto market.

The situation

The FUD associated with Huobi comes at a time when there is not a lot of confidence associated with crypto exchanges.

The biggest crypto exchange in the world, Binance, had to issue a statement last month to reassure its clients that everything was in order.

This was after one of the most renowned crypto exchanges in the market, FTX, had blown up rather spectacularly and collapsed in November.

The new CEO of the crypto exchange, John J Ray, is looking over the bankruptcy proceedings of the exchange and said that mismanagement had resulted in the loss of client funds worth billions of dollars.

The troubles for FTX had begun when the FTT token of the crypto exchange experienced a selloff, thereby shaking consumer confidence and driving people to withdraw their funds on the platform.

This resulted in a liquidity crisis for the crypto exchange, as it did not have one-to-one reserves of customer assets.

The exchange first disabled withdrawals for its clients and then filed for bankruptcy. Since then, the entire crypto ecosystem has been thrown into a great deal of turmoil.