Justin Sun, the founder of Tron, has called for the public to disregard circulating rumors suggesting that the cryptocurrency exchange Huobi is facing significant challenges, especially after the alleged detention of some of its top executives.
These speculations might have played a role in the multi-million-dollar outflows Huobi experienced over the recent weekend. The exchange’s total value locked (TVL) has also seen a decline, now standing below $2.5 billion.
The Ripple Effect of the Rumors
Recent reports have suggested that Huobi, a leading cryptocurrency exchange, might be grappling with liquidity issues. There are also claims that some of its staff members have been taken into custody by law enforcement.
Chinese journalist Colin Wu tweeted on August 5 about the detention and investigation of numerous senior executives from offshore crypto platforms. They are allegedly being probed for “providing fund payment and settlement services for gambling websites.”
Over the past weekend, Huobi saw an outflow of $64 million, leading to a significant dip in its TVL. Current data from DefiLlama indicates that the TVL is around $2.5 billion, marking a 20% decrease from the $3.13 billion at the start of July.
Of this amount, Bitcoin (BTC) makes up about a third, followed by Tron’s native token (TRX) and Huobi Token (HT) with 26.5% and 20.3% respectively. Notably, the price of HT experienced significant fluctuations over the weekend, now stabilizing at approximately $2.66, as per CoinGecko.
Sun’s Call to ‘Ignore FUD’
Justin Sun, who also holds a position as a Global Advisor at Huobi, labeled the unsettling rumors about the exchange as mere “FUD” (Fear, Uncertainty, Doubt). He expressed confidence in the future growth of both Tron and Huobi.
In his tweet dated August 7, 2023, Sun stated: “Ignore FUD, keep building! #TRON and #Huobi will thrive through continuous development. Trust in our vision and community efforts for a stronger future. Perseverance guarantees success!”
Interestingly, many responses to Sun’s tweet on Twitter (now referred to as X) simply contained the number “4.” This number has become synonymous with false reports, popularized by Binance’s CEO, Changpeng Zhao.
