What Huobi’s latest report means for its crypto-holdings worth…
Chinese cryptocurrency exchange Huobi Global yesterday published an asset transparency report. It announced its total estimated value of reserves to be $3.5 billion. The exchange reassured its users that their funds are safe, despite the crypto-market witnessing a collapse over the past week due to the FTX debacle.
The exchange noted in its report that it performed a Merkle Tree Proof of Reserves audit early last month when the exchange’s founder sold his controller stake to About Capital. Huobi will publish a third-party Merkle Tree Proof of Reserves audit within 30 days to boost user confidence even further.
Report or not, HT dips on the charts
Huobi Global not only holds HT tokens, but some of them are also held by Huobi Global users.
Huobi’s report, on the other hand, couldn’t manage to assuage a bearish market sentiment. HT, at press time, was trading at $4.82 – A 40% drop over the last seven days.
Following the publication of the report, Huobi reportedly saw outflows of 10,000 ETH. According to the exchange, these outflows were part of routine operations.
According to Huobi’s team, the addresses it listed include some hot wallets. The on-chain deposits and withdrawals are part of normal operations, they added. The exchange is operating normally, with the exchange assuring the safety of users’ assets. Finally, there are no and there will be no withdrawal restrictions for users.
Exchanges to publish Proof of Reserves
With the FTX debacle unfolding, cryptocurrency exchanges around the world have announced their plans to publish their proof of reserves. This, in order to reassure users that their funds remain safe.
Changpeng Zhao, CEO of Binance, claimed that all crypto-exchanges should do merkle-tree proof-of-reserves. Binance will begin the process soon. Binance also disclosed that it holds crypto-reserves worth $69 billion.
Seychelles-based KuCoin will be publishing its Merkle tree proof-of-reserves within a month. Another Seychelles-based crypto-exchange OKX also said that it is hiring an auditor and will publish an auditable Merkle POF soon.
Bitget will also be launching a Merkle Tree proof-of-reserves to promote complete transparency and comprehensive asset auditing.