Kalang Mist, Big Investors Start Withdrawing Funds After Huobi Announces Rebranding Plan To Become HTX

Huobi's crypto exchange is rumored to be rebranding to become HTX. (Photo; Doc. FinanceMagnates)

JAKARTA A number of institutional investors who disbursed their funds to crypto companies Huobi began to worry about the company's reserve funds. Concerns are not without reason considering that investment can only be done using stablecoin stUSDT, coupled with Huobi's rebranding plan to become HTX, which sounds like FTX.

In June, Justin Sun, a well-known figure in the crypto world, launched a project aimed at attracting crypto investors with a very high yield promise. The project offers a yield of 5% of low-risk securities, such as government bonds.

This project received great attention, and expectations were high. However, the results may have exceeded all expectations. In just two and a half months, investment in this product, known as the stUSDT, has jumped to $1.8 billion, showing how successful this project is.

However, behind this success, there is a significant potential threat to Huobi Global, the crypto exchange run by Justin Sun. Because investment in current STUSDT can only be done through Huobi, and this is what raises concerns. This arrangement has resulted in increased concerns regarding Huobi's ability to overcome the massive outflow of funds in the event.

According to leaked information from Financial Express, institutional investors are starting to attract most of their crypto holdings from Huobi as they are concerned about the exchange's ability to deal with the scenario.

In addition to the risks to financial reserves and news about withdrawing funds, there is one more reason that investors doubt Huobi, and Justin Sun's role may without realizing it has played a role in raising this doubt.

Huobi Rebranding Becomes HTX

Recently, there was an announcement from Huobi's press conference that the exchange would change its name to HTX. However, this announcement created controversy as the new name bears a striking resemblance to the bankrupt FTX exchange.

While this may seem to be a problem ofTENness, it shows that investors today are more cautious and alert to their funds on the stock exchange. This happened especially after the fall of the famous FTX exchange in November last year.

The success of the STUSDT project may bring financial blessings to investors, however, with doubts about Huobi, the future of this exchange may be a big question in the cryptocurrency ecosystem.