Exchange Reacts Amidst Stablecoin’s Struggle
In an unexpected turn of events, HTX, the cryptocurrency exchange formerly recognized as Huobi, has temporarily suspended its proof-of-reserves feature. Adam Cochran, a fintech analyst and Managing Partner at Cinneamhain Ventures, first reported this development. The suspension appears to be a direct response to the ongoing issues with the stablecoin TrueUSD (TUSD), which has been unable to maintain its peg to the US dollar.
Audit Discrepancies Raise Eyebrows
Adding to the controversy, data from DefiLlama indicates that HTX’s holdings in Ethereum (ETH) are a mere $120 million, a figure starkly contrasting the nearly $300 million reported in the latest audit. The inconsistency between reported figures and actual holdings has raised concerns among investors and regulators alike.
Temporary Shutdown of Reserve Information
HTX’s proof-of-reserves page, which typically displays crucial details such as reserve ratios and wallet balances, experienced a temporary blackout. Although the page is now back online, the timing of this incident—amidst the TUSD valuation concerns—has not gone unnoticed.
TrueUSD’s Backing Comes into Question
Since January 7th, TUSD has been trading below the $1 threshold. The stablecoin’s struggle to present timely attestations to confirm sufficient U.S. dollar reserves has led to speculation about its financial health. The lapse in transparency has only intensified suspicions about TrueUSD’s potential under-collateralization.
Stay tuned for more updates on this developing story.
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