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USDD stablecoin faces potential collapse amid Huobi bankruptcy rumors

the bear market deepens as negative news and FUD keep surfacing. The latest on the list of scary information is Justin Suns stablecoin USDD and the popular crypto exchange Huobi.

Mike Alfred, an investor who served as a board member of the BTCminer Iris Energy and digital asset investment platform Eaglebrook Advisors, earlier today pronounced some warnings on USDD stablecoin and Huobi Exchange.

According to Alfred, Justin Sun owns Shadow Huobi, and he may be the “most unpredictable billionaire in crypto.” Justin has sent a handful of billions of dollars in stablecoins around the room, including in and out of exchanges like Binance, Alfred said. Adding: “Something big is afoot. Withdraw all coins from unregulated exchanges.”

He also went ahead to tackle Justin Suns USDD stablecoin, stating that the algorithmic stablecoin is based on Tron has broken the bond and may be on the verge of collapse. “It’s Code Red time in crypto again,” Alfred concluded.

Following allegations that Justin Sun appears to be shady Huobi, rumors are now spreading about an insolvency of the stock exchange. When a tweep commented on Alfred’s post, saying, “I doubt he’s a billionaire.” Alfred responded that Justin had paid out $1.5 billion to fiat over the past few months. “He loots Huobi before it crashes.”

Is Huobi really insolvent?

Several theories have fueled the rumor of Huobi’s bankruptcy. It was reported yesterday that Huobi has closed internal communication groups and feedback channels for employees and is now asking employees to receive their salaries stablecoins.

Although the confirmation of the rumor has not been confirmed and there have not been any reports of choking on Huobi withdrawals yet, the conclusion of whether the exchange is solvent or not is still a fairly uncertain prognosis.

Amid the ongoing Huobi rumors, the exchange has been in the red in trading volume for the past 24 hours. According to data from Coinmarketcap, Huobi’s 24-hour trading volume is down over 15% to $343 billion.

Impact on USDD and the crypto market

At the time of writing, USDD has unpegged and is now trading at $0.9799 with a trading volume of $33.5 million. Huobi Native Token (HT) is also down more than 7% over the past 24 hours, with a trading volume of $20.5 million over the same period.

USDD stablecoin faces potential collapse amid Huobi bankruptcy rumors, Crypto Trading Newssource [HT/USDT] on TradingViewThere was no significant drop in the global crypto market; However, if the Huobi rumor is true and the stock market eventually crashes, there could be potential dips, particularly in altcoins. In addition, both Bitcoin and Ethereum appear to be in a state of consolidation, almost as if waiting for major news before moving.

Featured image from iStock, chart from TradingView

Source: Crypto News Deutsch

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