Huobi, which has been on the agenda with FUD news since last week, announced that it has decided to delist 33 altcoins in a new announcement today.
Huobi has decided to delist 33 altcoins
According to the official announcement, “To support the healthy development of the blockchain ecosystem, Huobi“ is removing the following cryptocurrencies from its list as of January 16.
As part of our continuous efforts to support the healthy development of the blockchain ecosystem, Huobi;
As of 11:00 on January 16, 2023, ABT, ATP, APN, AST, DIE, DHT, DFA, EDEN, GEAR, HC, INDI, IOI, INV, IRIS, GCOIN, GOF, KMA, MTA, NAS, OPUL, It will remove PEARL, PRIMATE, QASH, SMT, SLC, SKU, SOC, STC, TALK, VALUE, WHALE, WILD and YAM tokens from its list.
As Cryptokoin.com has reported, Huobi has been on the agenda for a while with intense FUD news.
Why is Huobi under fire?
Although Huobi is a prominent name in the crypto world, the stock market has been coming to the fore with its internal conflicts lately. For the past few months, speculation about a possible bankruptcy has been circulating among Huobi users and the larger crypto community. When FTX crashed, major centralized crypto exchanges rushed to offer something they called a “Proof-of-Stake” (PoR) audit. This report aims to maintain transparency on how user funds are stored on exchanges. Along with many other exchanges, Binance has started offering users their PoRs to ensure their funds are safe.
Huobi also submitted its PoR on November 12, 2022, one day after FTX filed for bankruptcy. The report stated that Huobi has approximately $3.11 billion in reserves. However, the report also noted that about 43% of its reserves are made from the exchange-issued Huobi Token (HT). This sounds alarmingly similar to the situation that triggered the FTX crash.
After the above, since December 2022, there are rumors of layoffs at Huobi. However, Huobi board member and Tron founder Justin Sun told users and staff that these reports are not true. But a month later, the company announced it was about to lay off 20 percent of its workforce because it wanted to maintain a ‘lean team’. It has also been reported that Sun has changed the way he pays his employees from fiat to USDT/USDC stablecoins.
In this environment, the exchange’s native token Huobi Token (HT) has seen a huge drop after all the rumors, news of layoffs and massive withdrawals from the stock market. HT has lost almost half of its value in the past few months, dropping from $9.40 at the end of October 2022 to $4.84 at the time of this writing.