Analyst Willy Woo revealed that Huobi exchange may be facing risks regarding its Bitcoin collateral. He also warned that this situation could lead to a mass withdrawal of customers.
Huobi’s Bitcoin reserves have significantly decreased this year, with notable drops on May 25th and July 7th. In particular, in 2020, Huobi had 220,000 BTC in reserves, but this number has now dropped to just 26,000 Bitcoin, representing a decrease of over 94% during the current period.
Willy Woo describes Huobi as “a ship adrift on a vast sea and slowly sinking.”
Additionally, the web traffic and user engagement with the Huobi cryptocurrency exchange have significantly declined.
Currently, Huobi is primarily used by customers from India, South Korea, Mexico, Russia, and Ukraine.
Huobi is one of the leading cryptocurrency exchanges in the market. At its peak, the exchange processed over $2 billion in daily trading volume. Currently, Huobi ranks 14th in terms of website traffic, liquidity, and trading volume.