Dogecoin Developers Suggest DOGE Community Withdraw Their Assets From Huobi Crypto Exchange

Crypto Dogecoin. (Photo; Doc. Unsplash)

JAKARTA - In a surprising development, a developer and main supporter of Dogecoin, known as Moshaboar, has called Dogecoin holders to withdraw their assets from the famous crypto exchange, Huobi.

The call comes amid growing concerns about Huobi's financial stability, which has sparked questions about the effectiveness of concepts commonly accepted as exchange financial health indicators, namely proof-of-reserves.

However, this call also opens more in-depth discussions about the basic principles of this concept. Dogecoin supporters argue that although proof-of-reserves have become the standard practice of showing the financial health of the exchange, this does not always provide an accurate picture.

Moshaboar warned that this concept, while important, should be balanced with other aspects in evaluating the stability and integrity of a crypto exchange. In a world based on decentralization and innovative technology, continuous improvements in security and transparency mechanisms are essential.

Concerns about Huobi were first raised by Adam Cochran, a fintech executive and a well-known investor. The center of concern is the striking discrepancy between on-chainHuobi data and figures expressed in the "Merkle Tree Audit" for the stablecoin Tether (USDT) asset held by Huobi.

Cochran pointed out that on-chain data showed that Huobi's assets were only worth 90 million US dollars (Rp1.3 trillion), much different from the claims audited by the exchange stating that Huobi owned USDT worth US$630 million (Rp9.5 trillion).

This discrepancy raises serious questions about how exchanges can report significant reserve funds, while on-chain data reveal different situations. This is exacerbated by the massive sale of USDT by Huobi, which occurred shortly after the launch of the STUSDT, a new stablecoin backed by Tron founder Justin Sun.

However, Justin Sun has firmly denied these rumors and expressed his commitment to the success and growth of his platform. The emergence of these calls and concerns underscores the need to continue to increase transparency and integrity in the growing crypto industry.