Following FTX Fiasco, Huobi Discloses Asset Holdings To Pacify Crypto Customers
Cryptocurrency exchange Huobi has disclosed the quantity and value of its digital assets held in reserves.
According to the Seychelles Islands-based company's " inexhaustive overview" of its digital asset holdings, the crypto exchange has:
- 9.7 billion Tron (CRYPTO: TRX) tokens
- around 32,000 Bitcoin (CRYPTO: BTC)
- 274,000 Ethereum (CRYPTO: ETH)
- And 820 million USDT (CRYPTO: USDTC) stablecoins.
Huobi revealed that it held $3.5 billion worth of digital assets. It also released a list of the addresses where the money is kept.
What Happened: Huobi, which was acquired by About Capital in October, unveiled details about its digital asset holdings to quell concerned users.
Other cryptocurrency exchanges have already provided their respective proof-of-reserves via Merkle tree and completed audits before Huobi revealed its proof-of-reserves. They include Binance (CRYPTO: BNB), Crypto.com, Deribit, Kucoin and Okx.
The cryptocurrency exchange declared that by making the display of proof of reserves a standard procedure moving forward, it will further increase user confidence.
Why It Matters: The crypto community is on edge following FTX's dramatic collapse and subsequent bankruptcy.
Prior to FTX's fall from grace, Binance CEO Changpeng Zhao unveiled plans to liquidate his company's entire FTX native token holdings. He then urged other exchanges to “do Merkle-tree proof-of-reserves.”
Disclosing the assets held in reserves increases transparency and user confidence in the exchange.
“To further enhance users’ confidence and accelerate our efforts in improving transparency, we are working to perform another Merkle Tree Proof of Reserves audit with a third party within 30 days,” the crypto exchange said in a statement.