You should stay very far away from Huobi exchange

I've tested a couple of a centralized exchanges and non has come as close as Huobi when looking at fraudulent crypto exchanges that appear extremely legit.

Here are a couple of things this exchange does that is crazy.

They list tokens that don't exist

They largely manipulate markets for profit

They deceive users into buying fake assets made to look like others

And now, Justin is using this exchange to steal millions for himself(probably always has).

Starting with listing tokens that don't exist, Huobi is fond of listing tokens yet to launch so as to capitalize on the speculation and potential hype surrounding the token or tokens.

An example of this is the Pi token, you know, that silly Pi project that I consider a KYC train mining users data just as worldcoin intends to, yes, that Pi mined with your phone.

There's a Pi token currently listed on Huobi but Pi mainnet is actually yet to lauch, so it's token doesn't actually exist in a tradeable form for a third-party centralized exchange.

Secondly, sure, market manipulation is what many exchanges do but when it comes to Houbi, it is often too much. If you're tech savvy and can write a good amount of code, you could try setting up market watch towers and track cryptocurrency prices across exchanges, you'd notice something in the process and that is that Houbi often has a higher trading price feed.

Why? Arbitrage!

The exchange often has assets trading at a higher range than most exchanges out there, giving them a chance to instantly trade for profits while everyone else is stuck and can't profit from the event because withdrawals, deposits or both will be suspended during this period.

How do I know? Because I've been an arbitrage trader since like forever and have been tracking these numbers and Houbi is always on the list of exchanges with higher trading pairs simply suiting for arbitrage.

About deceiving users into buying fake assets made to look like others, this still relates to arbitrage in one way.

This is something I experienced in the past one of those days of chasing arbitrage opportunities on centralized exchanges, I must say that it was my first time leaving the Hive space to arbitrage on CE.

What actually happened here was that Houbi had this token listed on their exchange with the exact name of another token not listed on their exchange and with no way to tell the difference, one would buy into it either in hopes that he's or she's buying low to sell for profit somewhere else(arbitrage) or just opportuned to get it low for an investment since obviously, the token on Houbi made to look like another was trading at cheaper numbers.

And now, Justin is using this exchange to steal millions for himself. Classic Sun right? What if he's been the owner from start? But that's just a what if right?

Alright, let's focus on what's known, Justin is a thief, Tron is basically a fraud that keeps paying his ass as crazily, it offers a cheap alternative to a lot and many move USDT via Tron.

Now I don't quite know the relationship between Tron and USDT and Houbi(I mean I know the relationship between Tron and Houbi - Just not with USDT), maybe there isn't much to know, but Binance seems to fear some catastrophic events may be on the way following some activities on Huobi.

Tether is experiencing a selloff, and Adams Cochran, a renowned business analyst, thinks the reason behind it is likely Huobi insolvency. Cochran observed Binance started selling USDT stablecoins in bulk when the police started questioning Huobi executives and some Tron personnel. That happened after Tron founder Justin Sun launched the stUSDT stablecoin.

Cochran posted this on X explaining in his research that Binance has a thing for noticing risky assets just as in the case of FTT of FTX due to its scales and connections. The timing of the sell-off according to him coincides with the questioning of Huobi employees by the authorities.

What's the big deal?

You see Sun recently launched stUSDT, a token he claims is USDT that is sitting in government bonds and gaining a 4.29% yield.

Cochrane believes the decline of USDT is related to this, since Sun basically owns Huobi now and probably then too.

Cochran revealed in his analysis that Sun and Huobi hold 98% of the tokens. He showed that USDT staked into stUSDT by users is swept into a Huobi deposit address. Based on his findings, Cochran inferred there should have been up to $500 million in redemptions from Huobi addresses on Tron if stUSDT was real. He used a screenshot from his findings to show such redemptions do not exist. Instead, the mint proxy sends tokens directly to the main address.

Using a screenshot, Cochran showed the tokens in the address are sent to other addresses controlled by Sun, including his Binance address. He also revealed that a significant amount of the stablecoin tokens go into Sun’s DeFi positions like JustLend.

Cochran noted that, from the information gathered, Huobi holds only $90 million in USDT and USDC combined. However, the crypto exchange’s “Merkle Tree Audit” still lists Huobi users as having $630M of USDT held, and a wallet balance of $631M USDT. coinedition.com

Classic Sun right?

Houbi is a part of Justin Sun's fraudulent crypto projects, set up to make him bulks of cash while the users get milked out totally.

As the reports note, Tron and Houbi may be under investigation, but if that will end in anything worth a read in terms of Sun getting pinned down for all his scammy projects is something we can't tell.

That said, as much as Sun needs to be stopped, an event like that would put the crypto space in some shaky grounds because of USDT on Tron.

Anyways, stay away from Huobi!

Posted Using LeoFinance Alpha