Huobi Global, a prominent cryptocurrency exchange, is at risk as investments in the staked USDT (stUSDT) project soar to $1.8 billion. The project, spearheaded by crypto entrepreneur Justin Sun, promises 5% returns tied to low-risk securities like government bonds. However, according to a Bloomberg report, Huobi’s heavy involvement in the project raises concerns about the exchange’s ability to manage sudden outflows of funds and the transparency of its reserves. Huobi’s Association With stUSDT Sparks Concerns And Triggers Institutional Withdrawals Per the report, Huobi’s close association with the stUSDT project has led to a significant transformation in the exchange’s crypto reserves. Altering by this shift and the lack of transparency surrounding stUSDT, institutional traders have withdrawn a substantial portion of their crypto holdings from Huobi. Related Reading: Bitcoin May Not See Lasting Bullish Momentum Until This Happens This withdrawal trend highlights the potential risks of Huobi’s concentration on the stUSDT platform. Notably, blockchain research firms have expressed concerns about the relative lack of transparency surrounding the stUSDT project. The absence of comprehensive information abou ..
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