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🔥 Huobi The Next FTX? Next Exchange Potentially Insolvent🚨

Ever since the FTX debacle last year, investors are on edge whether their coins are safe with exchanges. Several exchanges started to post their wallet addresses to show their "proof of balances" in order to regain trust from the public.

This gives us as investors a great tool to decipher whether an exchange is at risk or not.

As seen on nansen.ai (exchange balance tracker), Huobi's balance sheet looks terrible. 49% of all the assets in their wallets are from their NATIVE tokens (remember FTX with FTT and SOL?). Only 37% of total value lies in the liquid USDT, BTC and ETH tokens, which is by far the worst distribution of all the exchanges tracked by the website.

My best guess is that Huobi will not survive if people will actively remove their funds from the exchange.

Something's fishy! Below you find the USDD/USDT pair. USDD is Tron's (TRX) linked stablecoin which functions in a similar way as the LUNA stable coin did. To repeg USDD to 1 USDT the company (DAO) behind USDD would need to sell TRX and the like, which would obviously have a negative impact on the markets.

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In my view, Huobi is the next potential exchange to fall. With 49% of their assets being in native tokens and 31.5% (Huobi token) in a very illiquid token this is a disaster waiting to happen.

Be careful.🙏
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