By Richard Hines
The Huobi exchange has released a detailed outline of all its wallet holdings and the total assets in its exchange, in a stead to improve users’ trust, transparency and confidence, assuring users that they will not tread the same path as FTX.
Huobi Discloses Its Exchange’s Holdings
In the wake of the recent liquidity and crash that occurred on the FTX exchange platform, most exchanges have taken action to reassure users of their funds safety, one of which was Huobi.
The Huobi exchange publicly outlined all its holdings in the exchange; this exchange was disclosed to have 32,000 BTC, 274,000 ETH, 820 Million USD, 9.7B TRX, which accumulated to a total of 3.5B USD.
This move was made in earnest after the fall of the FTX exchange. The crisis that took over the market left investors second guessing leaving their investment in exchanges or moving them safely to wallets or selling off. This drove the motive of transparency—to gain users’ trust by letting them in on their funds safety with evidence, assuring them of no event of bankruptcy.
They further propagated this movement with a display of wallet holdings; A snapshot was taken which displayed the list of wallets in the exchange and the amount and types of tokens held. This disclosure came after an announcement made by the Huobi global organization addressing the FTX crash and reassuring investors that they would not go down that path, as they will be committed to being transparent and also protecting user’s funds.
In October 2022, the About Capital Buoyant Fund acquired major shares in the Huobi exchange making it the biggest shareholder, and with this acquisition came new developments. The team performed a Merkle Tree Proof of Reserve Audit, which was a means of enhancing transparency and building users’ trust and confidence with the exchange.
Other Exchanges Move To Promote Transparency
Not only has Huobi taken this step, also other exchanges have followed suit, from Binance to Huobi and now to Bitfinex.
The Bitfinex exchange has also released a public detail of all its holdings and assets in a stead to improve users’ trust and confidence in the exchange.
After the FTX crash, withdrawals were disabled which caused investors to stand the chance of losing all their investments in the exchange as FTX filed for bankruptcy.