Insider reveals Huobi Global’s operations are stable, in spite of market rumors
Jul 09, 2022
In response to recent rumors that world-leading crypto exchange Huobi Group's founder is selling his shares in the company, a person close to the company has disclosed some detailed information.
According to the source, the company's current operations remain normal, with cash flow being sufficient at present. The platform has set up a risk management reserve of 20,000 BTC, whose total amount has been unchanged since 2018, to hedge against extreme market situations.
The recent Terra-Luna crash, the collapse of Celsius, and Three Arrows Capital’s insolvency have exaggerated already bearish market conditions and deeply impacted investor confidence, leading to many unsubstantiated rumors regarding some of the major crypto exchanges in the market.
According to Lily Zhang, CFO of Huobi Global, the company has abundant cash flow, and has invested more than US$300 million in the industry throughout this bear market. Currently, the company’s investing team is in talks to invest in more than 100 projects worldwide, involving an aggregate amount of roughly US$6 billion.
Despite rumors circulating about Huobi, the company insider looked into its security metrics and found that there have been no security breaches and accidents throughout its nine years of operating history.
Following the recent market turmoil, the company immediately stepped up measures to protect users’ assets from serious security incidents. One point to make is that users’ deposit and withdrawal abilities remain normal, ensuring that they can withdraw assets at any time. The company always prioritizes users’ rights and interests when making decisions on trading limits, and always informs users of risks in a timely manner. Therefore, users should never have to worry about withdrawal issues that are commonplace on other trading platforms.
Regarding recent rumors that Huobi’s founder Leon Li is selling his shares in the company, the source said that Li’s decision to sell the shares for health reasons is his own decision as a major shareholder of the company. It is not a management decision and thus has no impact on the company’s operations, which remain normal.
CFO Zhang had mentioned earlier that the company’s capital reserves are completely separate from its users’ funds, and that the company has not been affected by the industry’s recent liquidity crisis.
“As the only exchange in the industry to have maintained a zero security incident track record for nine consecutive years, Huobi Global finished auditing potential risks to user assets in June, and can confirm that all of its user assets are safe,” Zhang said.
As the industry is experiencing a new crypto winter, the insider suggested that it is the top industry players’ obligation to stabilize the industry, maintaining stable market conditions and ensuring the safety of users’ assets. This is essential to maintaining investor confidence in the industry.
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