Crypto Exchange HTX Deactivates Proof-of-Reserves Feature
Crypto exchange HTX, previously known as Huobi, has deactivated its proof-of-reserves feature. This comes at a time when stablecoin TrueUSD (TUSD), linked to HTX stakeholder Justin Sun, has been struggling to maintain its $1 value for over two weeks.
Concerns Raised by Fintech Analyst Adam Cochran
Fintech analyst Adam Cochran noted that live data from DefiLlama showed that HTX had only $120 million in ETH holdings, contradicting the latest audit report of nearly $300 million.
Brief Downtime of Proof-of-Reserves Webpage
Earlier today, HTX’s proof-of-reserves webpage temporarily displayed no information about the exchange’s cryptocurrency holdings. Key data such as reserve ratios, wallet balances, and user asset totals were missing. The timing of this downtime raises questions, especially given the ongoing challenges with TUSD.
Heightened Scrutiny of TUSD’s Backing
TUSD has faced increased scrutiny regarding its lack of full backing. Since January 7th, TUSD’s trading value has fallen below $1. Concerns grew when timely attestations verifying sufficient U.S. dollar reserves were not provided, leading to speculation about under-collateralization.
Hot Take: Questions Surrounding HTX and TUSD
The deactivation of HTX’s proof-of-reserves feature and the ongoing struggles with TUSD raise concerns about the transparency and stability of these platforms. With discrepancies in reported ETH holdings and doubts about adequate backing for TUSD, crypto investors should carefully evaluate their involvement with these assets. Trust and accountability are crucial in the crypto space, and any uncertainties surrounding exchanges and stablecoins can have significant implications for users.
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