Token Delisting: Huobi Cuts Ties with Justin Sun's USDD

Token Delisting: Huobi Cuts Ties with Justin Sun's USDD
In an unexpected move, the cryptocurrency exchange Huobi has made an announcement that sent shockwaves through the digital currency community. On the upcoming Monday, Huobi plans to bid farewell to ten trading pairs, but hold your horses, because these aren't just any ordinary tokens. 

The main targets of this delisting spree are those who have been mingling with none other than Justin Sun's USDD, and come June 29, they will vanish into thin air. Huobi claims that this decision is aimed at enhancing the trading experience for its users, but could there be more to the story?

According to a reputable Bloomberg report, the trading pairs facing the axe due to their association with USDD encompass a range of popular tokens. Solana's SOL, Cardano's ADA, ApeCoin's APE, Polygon's MATIC, Filecoin's FIL, and Ethereum Classic's ETC are among the notable casualties. 

It is important to note that USDD itself is a stablecoin issued by the TRON DAO Reserve, a community-governed entity. CoinMarketCap, a renowned platform for cryptocurrency data, currently ranks USDD as the seventh largest stablecoin by market capitalization.

The decision comes as no surprise to those familiar with the public dispute between Sun and Huobi. Huobi, in a statement on its website, has encouraged its customers to explore alternative options.

This development comes in the wake of recent categorization of numerous tokens as securities. The United States Securities and Exchange Commission (SEC), in its legal actions against Binance and Coinbase earlier this month, officially classified 19 cryptocurrencies as securities. Notable tokens in this list include ADA, SOL, and MATIC.

Operating as an unregistered securities exchange is illegal in the United States. As concerns regarding this classification continue to rise, other trading platforms such as Robinhood and eToro have already taken steps to withdraw support for certain tokens.

Token Controversy: Sun Points Finger at Huobi Founder's Brother

Recently, there have been some tensions between Sun and Huobi. Sun, who serves as a Global Advisor at Huobi and is also the founder of Tron (TRX), accused Li Wei, the brother of Huobi's founder, of acquiring Huobi's native token (HT) through questionable means without making significant contributions to the Huobi community. Sun's claims, shared in a Twitter thread on May 17, suggested nepotism and improper profiteering on Li Wei's part. However, these tweets have since been deleted.

In a recent development, Sun transferred a substantial amount of money to Huobi Exchange. Arkham Intelligence data reveals that Sun unstaked and sent 15,815 ETH (equivalent to $29.7 million) to Huobi through an intermediary address. The funds originated from the staking platform Lido Finance.

Initially, this move was seen as an aggressive stance against Lido. However, it was later revealed that Sun still had a significant amount of staked ETH, approximately 290,000 ETH (worth nearly $546 million), remaining on the platform, dispelling the rumors of a complete disengagement.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.