This Monday, June 26, the Huobi crypto exchange announced its intention to remove ten trading pairs from its list. That said, it’s not just any tokens. First, trading Justin Sun’s USDD will be unavailable starting Thursday, June 29. Huobi said the changes were meant to give its users “a better trading experience.” But did Justin Sun’s public accusations against the stock founder’s brother play a role in this decision?
According to a Bloomberg report, some of these USDD trading pairs include Solana’s SOL, Cardano’s ADA, ApeCoin’s APE, Polygon’s MATIC, Filecoin’s FIL, and ETC tokens of Ethereum Classic. USDD is a stable coin issued by TRON DAO reserve which is managed by the community. It is currently the seventh-largest stablecoin in the industry by market capitalization, according to CoinMarketCap.
A withdrawal that follows an action by the SEC
This decision comes as no surprise to those who have followed the public feud between Justin Sun and Huobi. In a statement published on its website, Huobi encouraged its customers to choose other solutions for these trading pairs. The exchange said:
“Please choose other trading pairs for your trades if you have assets in ADA, APE, ARPA, ETC, FIL, GAS, MATIC, QTUM, SOL and ZKS. We request you to cancel pending orders from the above trading pairs as soon as possible. When the trading pairs are deleted, the pending orders will be automatically canceled and the assets will be automatically returned to your Spot account”.
This move also follows the recent classification of most crypto-tokens as securities by the US SEC. In fact, earlier this month, as part of the lawsuits brought by the United States Securities and Exchange Commission (SEC) against Binance and Coinbase, the regulator designated 19 cryptocurrencies as securities. We especially find ADA, SOL and MATIC.
In the United States, it is illegal to operate as an unregistered exchange. In a sign of growing concern over this classification, other exchanges, including Robinhood and eToro, have already removed support for some of these tokens.
Justin Sun’s accusations against Huobi
Recently, Sun and Huobi’s relationship has been rocky. In fact, Justin Sun, founder of Tron, but also an adviser in Huobi, last month accused Li Wei, brother of the founder of the exchange, of having obtained free assets from the platform’s original token (HT), this through “abnormal means”.
So what is it? In a Twitter thread dated May 17, Justin Sun suggested that Li Wei made no contribution to the Huobi community but was still able to amass significant wealth by selling tokens. Mr. Sun therefore sees this as a case of favoritism and undue profit power. Since then, however, his tweets have been deleted.
Last week, according to data from Arkham Intelligence, Justin transferred, staked and then sent 15,815 ETH, equivalent to $29.7 million, to Huobi via an intermediary address. These funds would come from the Lido Finance platform.
This transfer was generally interpreted as an aggressive move against Lido. However, the rumor disappeared when it emerged that Mr. Sun still has nearly 290,000 ETH on the platform, worth nearly $546 million.
Moral of the story: Anyone who attacks Huobi kills their fingers.
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