Huobi - the new trouble spot of the crypto world ?

[malcovi2]

if anyone is interested where did the rumour started:
original
https://hk.investing.com/news/economic-indicators/article-366758
translate to english
https://hk-investing-com.translate.goog/news/economic-indicators/article-366758?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

Better avoid Justin Sun because he has been has been running ponzi schemes.

[davis196]

You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.

He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.

I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name). The crypto industry needs to get rid of centralized exchanges and their shady CEOs. DEX are the future. Cold wallets are the future. I don't think that USDT will face difficulties because of this case. Huobi might have to shut down, but who cares at this point(except the people, who have money in Huobi). The crypto world will survive without another centralized exchange platform.
I also expect Binance to shut down at some point. The crypto winter will continue in 2024, but the bull run in 2025 is going to be huge.

[so98nn]

Oh man, these owners of the exchangers and their dreams of getting rich quickly killing the market very quickly. Why would that man invest the money from one business to another business, it's a mystery? I think he had plans to build another empire, get the returns back from that business and then again return the money to the Huobi so that instead of buying the bonds he would just return the money plus earned profits to the users.

There is no other way this is not his thinking while making such a big step. The balance sheet is available for the public and no wonder they knew what they were doing. This is so bad for every business if you are going to mix up the money just like that. I don't really get how this was allowed by the stake holders in the Huobi.

[UchihaSarada]

Oh man, these owners of the exchangers and their dreams of getting rich quickly killing the market very quickly. Why would that man invest the money from one business to another business, it's a mystery? I think he had plans to build another empire, get the returns back from that business and then again return the money to the Huobi so that instead of buying the bonds he would just return the money plus earned profits to the users.

Huobi does not have good reputation in cryptocurrency centralized exchange and they faced with risk from China mainland government too. I don't choose Huobi to use when I have other centralized exchanges with less negative reputation and if I don't like KYC, I can pick non KYC exchange.

I have small capital in cryptocurrency so I don't have big issue with DEXs.

https://kycnot.me/

I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name).

Justin Sun likes pump and dump games which initiated by him several times. From announcing a lunch with Waren Buffet to some events when they tried to pump TRON and TRON stable coin. The most fearful thing from his stable coin is it uses algorithm that is what killed Terra stable coin UST in May 2022.

Months later, many stable coins lost their pegs including TRON stable coin but Justin Sun successfully protected the peg. However, I would like to remind that back in 2022, marketcap of TRON stable coin is very small so it was a bit easy for Justin Sun to recover the peg. Things can be very different in future when the marketcap is bigger and out of control from Justin Sun. That stable coin will possibly face with similar peg attack like Terra UST and lose its peg.

[tjtonmoy]

Just like you, people use it for exchange and trading purposes, no one says they are leaving their money on Huobi or centralized exchanges.

There are people who think that CEX gives them more security than personal wallets. And I am not saying it just because I think that people think this way, it's because I have seen people do it and say it. I have a friend who does the same. He thinks that if anything happens to the CEX, its owner will compensate the lost amount somehow. He said it to me on his own. I tried to explain how dangerous it is and yet he wants to HODL his assets in CEX. Not for trading purposes but just to keep his assets safe. So here you go. There are people like this.

Now for the trading. You should only trade and invest what you can afford to lose right? If you are doing that, then there's no problem. If it's lost, then that won't matter that much. You will learn a lesson from that instead. But when you are hodling and want to keep your assets safe, then CEX is not the best option. It never was and never will be. Hope you got my point. People are staking in Huboi Exchange. Not trading to be exact. So that brings a huge red flag.

[DrBeer]

You buy stUSDT notes with your USDT. Justin Sun is supposed to buy US bonds with them, but as analyst Adam Cochran writes, he doesn't. Instead, investors' USDTs are deposited in the addresses of the exchange and Justin Sun's personal wallets.

He spends them to support his other projects. And in a moment, if everyone wants to withdraw their USDT, Huobi simply won't have the money to process the withdrawal.

I've always been suspicious about Justin Sun. He's just another con artist, just like all the other big crypto "whales" like Sam Bankman-Fried or the guy from Terra/Luna(I forgot his name). The crypto industry needs to get rid of centralized exchanges and their shady CEOs. DEX are the future. Cold wallets are the future. I don't think that USDT will face difficulties because of this case. Huobi might have to shut down, but who cares at this point(except the people, who have money in Huobi). The crypto world will survive without another centralized exchange platform.
I also expect Binance to shut down at some point. The crypto winter will continue in 2024, but the bull run in 2025 is going to be huge.

Decentralized exchanges have some problems that do not fit well into the regulatory policy of market regulators. For example, on a decentralized exchange, it is impossible to block an account on demand, request data on transactions of a particular user, etc. actions that work in case of "special situations" or for "special persons". Therefore, in my opinion, they will be in disgrace, or at least with a bunch of restrictions and rules that will nullify all the advantages of decentralized exchanges

[coolcoinz]

It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.

As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.

In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.

[DrBeer]

A moment of humor, from reality, and on a related topic:
Huobi .... Justin Sun goes for broke, and tries to somehow change the trajectory of his flight to court:

"Justin Sun, the owner of Huobi Bankrupt (https://t.me/c/1597252347/4025), offered Paypal to launch a PYUSD stable on the TRON network.
Paypal is lucky for scam offers    After all, PYUSD was supposed to be released back in 2022 on Solana with the support of FTX (https://t.me/c/1597252347/2561)."

[malcovi2]

It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.

As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.

In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.

We are not talking about a coin/token here, We are talking about Huobi being possibly insolvent because Justin Sun may been mishandling Huobi's customer funds.

[justdimin]

Justin Sun likes pump and dump games which initiated by him several times. From announcing a lunch with Waren Buffet to some events when they tried to pump TRON and TRON stable coin. The most fearful thing from his stable coin is it uses algorithm that is what killed Terra stable coin UST in May 2022.

Months later, many stable coins lost their pegs including TRON stable coin but Justin Sun successfully protected the peg. However, I would like to remind that back in 2022, marketcap of TRON stable coin is very small so it was a bit easy for Justin Sun to recover the peg. Things can be very different in future when the marketcap is bigger and out of control from Justin Sun. That stable coin will possibly face with similar peg attack like Terra UST and lose its peg.

I think he uses that as a ploy for marketing, he does whatever he possibly could and then get some attention. Lately he just gave up and left as we all know, but while he was still active, his entire system was regarding how he wanted to just focus on how he could profit if he possibly could.

Obviously that did not resulted with that much of a big deal, it's definitely a good thing to see how the situation is at that moment, and Justin realized that it's not going to be easy for him and then ended up getting out. But dude was a marketing guy, he wasn't a coder, or a designer or anything he really, he was just a marketing guy that did marketing stunts that resulted with pump and dump for Tron, and that is the issue.

[serveria.com]

I strongly believe people spreading such FUD are anti-Bitcoin and anti-crypto. You can always find some dirt on any CEX or crypto personality. Like in any other business (big business) there are very few persons who are morally upright, fair and all that. It's a rat race, if you expect someone to care about other people you're naive and childish.

But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!    

[DrBeer]

I strongly believe people spreading such FUD are anti-Bitcoin and anti-crypto. You can always find some dirt on any CEX or crypto personality. Like in any other business (big business) there are very few persons who are morally upright, fair and all that. It's a rat race, if you expect someone to care about other people you're naive and childish.

But spreading such FUD can hurt Bitcoin. There are lots of noobs panic selling on such news. As the latest events in the world showed us - propaganda influences 70-80% of people so you have to be responsible!    

 

I know very well from talking with you in other topics that it’s normal for you to deny reality And also that your knowledge set does not allow you to conduct a reasoned, logical dialogue, proving or refuting this or that event. The only option for you to conduct a dialogue is to deny everything without giving arguments and lie and manipulate information. Therefore, in topics where the questions are already a little more complicated, you just have to repeat the same thing, like a parrot - FUD FUD FUD FUD FUD!

[NotATether]

Justin Sun is destined to be doomed. He is secretly cashing out money from his scam USDT using his Huobi exchange and other project connected to him. He was once caught cheating on his own giveaway sponsored to Binance.

CZ cutting ties to Sun suggest that the boat is sinking already same with what he did to FTX. CZ is part of it too abut ofcourse no one will believe because of his blind follower. CZ and Justin are milking crypto market with their exchange and scam projects that gathers fund through launchpad.

How does this Justin Sun guy manage to make trouble wherever he goes? 

Every time there is an incident where Justin Sun is involved, somehow he manages to make the situation worse. Makes me wonder why Huobi is even partnering with him in the first place, after all the shady shit that went bust last year.

Oh, and their asset reserves were under intense scrutiny before too, because they kept it in some addresses, made the report, and then immediately moved them somewhere else.

[19Nov16]

Huobi is a big exchanges that I have used since 2018, of course I am surprised by this news and the classic issue of Exchanges that cannot serve the stable withdrawal of coins is certainly a serious problem, with this news I wary of and immediately move assets to private wallets.

[Wend]

Just like you, people use it for exchange and trading purposes, no one says they are leaving their money on Huobi or centralized exchanges.

There are people who think that CEX gives them more security than personal wallets. And I am not saying it just because I think that people think this way, it's because I have seen people do it and say it. I have a friend who does the same. He thinks that if anything happens to the CEX, its owner will compensate the lost amount somehow. He said it to me on his own. I tried to explain how dangerous it is and yet he wants to HODL his assets in CEX. Not for trading purposes but just to keep his assets safe. So here you go. There are people like this.

Now for the trading. You should only trade and invest what you can afford to lose right? If you are doing that, then there's no problem. If it's lost, then that won't matter that much. You will learn a lesson from that instead. But when you are hodling and want to keep your assets safe, then CEX is not the best option. It never was and never will be. Hope you got my point. People are staking in Huboi Exchange. Not trading to be exact. So that brings a huge red flag.

If your friend is leaving assets on centralized exchanges, you should try to explain to him or else the consequences will be very unpredictable. Of course I agree with you on the point of not storing bitcoins or crypto assets on centralized exchanges, because that's not where we store our assets. But we also can't get rid of them completely, I mean we should use them for the right purpose. It is for trading and exchange, not a place to store long-term assets.

[coolcoinz]

It's the same problems over and over. People have bitcoin, but they always look for a better coin that will give them 10x fast. They don't want to wait for bitcoin adoption, it's better to get some crap and wait for someone to pump it for you - free money. Tron, like many other coins is a total shitcoin with no future. The only goal of these coins is to make their developers and a group of early adopters rich. People accept that hoping they will be among those early adopters and the thing goes on until it crashes. Look at some of the once popular projects like Lisk that are scraping the bottom.

As far as TRX goes, somebody was pumping it just a week ago and it went up by almost 10%. I wonder what that was.

In the end bitcoin will keep going and making new highs and scams will be coming up and dying, just like bitconnect did. Next era will be CBDC shitcoins and centralized premined surveillance coins like world coin.

We are not talking about a coin/token here, We are talking about Huobi being possibly insolvent because Justin Sun may been mishandling Huobi's customer funds.

I think that my post is 100% on topic. Tron and other shitcoins like it are, after all, the root of this problem.

If Justin and his shitcoin did not have community's support, he wouldn't be able to pull this off and make enough money to pay Buffett a 4 mill for a dinner like it was nothing.
This is also the reason why Sun is financing Huobi by byuing their HT tokens. It's like they're selling him shares and giving him control, but why is he able to buy millions of these tokens in the first place?
The answer is because dumb people are giving him money in exchange for his shitcoin (TRX)
The community should learn from this and stop supporting scammers and looking to finance new pump and dump ponzi schemes

[someone703]

Not your key, not your coin. Why don't people understand this? Everything that is centralized is a piece of shit. Even those that are in the top 3. I still don't trust them 100%. When others have control over your assets, anything could happen to them. So I don't wanna hand over my asset's control to someone else. This is a direct red flag for the Huboi exchange. Why are people still using it? Do they not know about it yet or they are just ignorant?

It's not like I don't use CEX. I do, but only when I need to do something in it. When the work is done, I just move my assets to my personal wallet. Learn to take control over your own assets people. It's still not too late. Otherwise, this could be another case like FTX.

I agree with what you are sharing. Indeed, taking control and learning how to protect assets in the crypto space is a very practical and smart point of view. When you manage assets yourself and learn how to keep them safe, you are making sure you are independent and not dependent on others.

Managing your own and thoroughly understanding how the cryptocurrency market works can really help you better deal with challenges and risks. With this in mind, you have the ability to create a safer environment for your assets and ensure that you are making informed decisions about using and investing in crypto assets. .

[Silberman]

If your friend is leaving assets on centralized exchanges, you should try to explain to him or else the consequences will be very unpredictable. Of course I agree with you on the point of not storing bitcoins or crypto assets on centralized exchanges, because that's not where we store our assets. But we also can't get rid of them completely, I mean we should use them for the right purpose. It is for trading and exchange, not a place to store long-term assets.

I would in a way understand that the very first investors that lost their money because of centralized exchanges were kind of naive and did not expected this to happen, but we have seen exchanges collapsing and taking their clients with them several times and the same is true for failed projects and coins, so how many times people need to watch the same events before they know how everything ends? At this point besides bitcoin and maybe ethereum no other coin should be trusted at all as the risk those altcoins collapse out of nowhere is simply too high.

[benalexis12]

as far as I know, that's just a rumor. Then this kind of news seems to just wake up the other users. But even so, if they have a large amount of funds in houbi, the best thing for users to do here is to first transfer their assets that they have here in Houbi to another platform, because we know that when centralized exchanges suddenly freeze all their user accounts, it's better to be double careful. Because it will be more difficult for us to release it when the unexpected happens.

[DrBeer]

...If Justin and his shitcoin did not have community's support, he wouldn't be able to pull this off and make enough money to pay Buffett a 4 mill for a dinner like it was nothing....

The problem is that this is society, and there are all of us. And many people still dream of mega-income from the crypto market, take their word for it, trust without thinking, but only seeing the "golden calf" ahead of them.... With such an audience, for many more years and even decades, you can find masses of such gullible and greedy simpletons who will carry their money and SUPPORT, and will even go to rallies in support of the one who robbed them. The problem is in us, and that is the biggest problem.

PS about the behavior of greedy and not very smart "investors", or rather the mysteries of such behavior, I recommend reading about the MMM pyramid and its leader S. Mavrodi, a very informative story. I see its repetition in many "projects" in the crypto world