Huobi Token (HTX) Raises Concerns with Intriguing Connections to Binance

Controversy is brewing in the cryptocurrency world, and it revolves around Huobi Token (HTX) and its intricate connections with one of the industry’s giants, Binance. A recent study conducted by Kaiko Research has unveiled some intriguing and, frankly, troubling findings. 

HTX’s Tether to USDC Conversion: A Troubling Trend

The heart of the matter is that HTX, previously known as Huobi, has converted a substantial amount of Tether (USDT) into USD Coin (USDC) over the past three months. What’s raising eyebrows is that after these conversions, sizable transfers of USDC were made to Binance. This move suggests a potentially concerning link between these two prominent exchanges. 

If this looks normal, here’s the catch: HTX’s JustLend product offers users a tempting deal. For every USDT deposited, they receive one staked USDT (stUSDT) in return. This staking process is marketed to earn interest, with the deposited USDT being strategically invested in low-risk treasury instruments. HTX has $400 million in stUSDT deposits, adding intrigue. It was the exact amount secretly transferred to Binance.

So far, there’s no proof of criminal activity, but HTX’s unusual trading behavior casts a shadow. It doesn’t always match significant market events. Case in point, when Worldcoin’s WLD token made its debut earlier this year, Kaiko spotted clusters of buy and sell orders that raised eyebrows. In just one week in July, the trading volume of altcoins with a value below $1 billion surged from $1.4 billion to a jaw-dropping $3.4 billion.

Digging Unusual Trading Patterns

HTX’s trading volume dominance was particularly remarkable. Following the launch of Worldcoin’s token, it claimed a substantial share of global exchange volumes, a feat that’s nothing short of astonishing, especially considering the overall subdued exchange activity at the time. This surge in HTX’s fortunes occurred concurrently with the record-low exchange volumes. At the same time, Poloniex also saw a similar surge. Seems fishy? 

Is HTX on FTX’s Path? 

Linked with HTX and Poloniex, Justin Sun has faced serious allegations of wash trading TRX. HTX’s concentration of reserves in a single asset has worried institutional investors, leading to significant withdrawals. HTX’s holdings in USDT are notably lower than Binance’s. 

Although Justin Sun has vehemently denied being the force behind the mysterious $200 million transfer into HTX’s reserves in August, the entire situation has left many wondering about the stability and transparency of the cryptocurrency ecosystem as a whole. This peculiar series of events suggests that there may be more beneath the surface than meets the eye.