This days it seems that there are two concerns in the crypto world that are spreading fud.
The first is that the previous week USDT (Tether) broke it's peg to the US dollar to 0.997 but of course that is not uncommon especially when there is a selling pressure of crypto dollar to fiat because of that FUD.
The Second and in my opinion the only reason to have concers over is the insolvency rumors that are spreading about Huobi.
Huobi is the 12th largest crypto exchange in the world with
$1,140,074,586 In trading volume /24 Hours
608 Coins listed
703 Pairs being traded
It is fair to say that at a point of low liquidity and an overall bear market for such an exchange to close will probably nuke crypto.
It is not the first time such rumors are being spread but this time it is different .
In Friday investor and crypto watcher Adam Cochran published a series of tweets about a big selloff of the stablecoin Tether, explaining that it has been driven by events at Huobi. According to Cochran, Huobi executives are being questioned by Chinese police, and the exchange is obviously insolvent owing in part to alleged owner Justin Sun using customers’ funds as his own piggy bank. Cochran says this led others, including Binance, to sell off Tether holdings on the exchange.
Of course Justin Sun denied everything and later a transaction was spotted The wallet address marked as Justin Sun withdraws 200 million USDT from JustLend and deposits it into Huobi. Huobi’s USDT reserves have also increased from around $85 million to the current $285 million.
So the fud created a lot of problems to Huobi that made Sun infuse the exchange with USDT to help process withdrawls .
Lately everything shitty and bad for crypto involves this man how on earth is possible that anything it touches becomes literal shit !