Coin Exchange HTX (formerly Huobi) has all of a sudden stopped the operation with proof-of-reserves feature, raising concern in response to turmoil surrounding stablecoin TrueUSD TUSD. The news comes as TUSD, purportedly associated with HTX stakeholder Justin Sun, has been facing difficulties to stay at its $1 peg for more than two weeks.
Analyst Adam Cochran, Managing Partner at Cinneamhain Ventures revealed the suspension of proof-of reserves within days as HTC’s actual ETH holding diverged from its reported holdings. DefiLlama provides data revealing only $120 million in ETH, which is far off the nearly $300 million reported by a recent audit.
Previously, HTX’s proof-of-reserves web page went blank for a few seconds with zero information about its cryptocurrency holdings. Although the page is working, implementing this change has only fueled concerns that TUSD may be under-collateralized.
Since missing the $1 mark on January 7th, TUSD has been under close scrutiny. The lack of clearance on the reserve assets in a timely manner has heightened concerns over stablecoin backing.
As both HTX and TUSD are encountering continuing problems, the crypto community continues to keep an eye on things so that any second tendency could be noticed as quickly as possible.
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