Huobi Publishes Asset Transparency Report, Discloses $3.5B Crypto Reserves 

In the wake of crypto exchange FTX’s resounding crash, Huobi Global has released an asset transparency report. The publication aims to allay user concerns about the security of their funds amidst growing anxiety industry-wide.

Huobi Holds $3.5B Worth of Cryptocurrency

Per the report, Huobi global’s reserves are worth an estimated total of $3.5 billion. As of Nov 12, the exchange held 191.84 million units of its native token Huobi token (HT), worth about 900M USD. Huobi’s reserves also include 274k ETH and 32k BTC, as well as 9.7 billion TRX, 820 million USDT. 

The report further noted that cryptocurrencies such as ATOM, ADA, BCH, DOGE, DOT, MATIC, SHIB, and ETC were also present. In their release, the platform noted that the HT tokens do not reside exclusively in wallets belonging to Huobi Global. Indeed, some of the crypto exchange’s clients are in possession of the HT tokens.

FTX Collapse Forces Exchanges to Reassure Users

As stated earlier, Huobi shared the asset transparency report as a response to recent events surrounding FTX. Previously the industry’s third-biggest exchange by trading volume, the Sam Bankman-Fried-led firm imploded in the space of a few days. This came after a report birthed insolvency fears given that sister firm Alameda only held FTX’s native token FTT on its balance sheet.

It appeared a forthcoming Binance acquisition would be the platform’s salvation. However, the deal fell through, and FTX spiraled almost immediately afterward. The platform announced in a press release on Friday that it had filed for Chapter 11 bankruptcy alongside several affiliated companies.

The events of the previous week have kicked off a global frenzy among exchange platforms. Striving to reassure clients of the safety of their investments, firms have begun publishing “proof of reserves.” Binance was one of the movement’s  forerunners as it revealed $69 billion reserve holdings in a Nov 10 publication.

Huobi to Release Merkel Tree Audit

The platform explained in its release that it was unveiling its hot and cold wallet balances to show its dedication to transparency. The exchange reportedly aims to make this a regular practice.

In early October 2022. About Capital buyout fund completed the acquisition and became the majority shareholder of Huobi. During the due diligence and takeover process, Huobi already performed a Merkle Tree Proof of Reserves audit.”

A Merkel Tree audit involves a third party taking an anonymized snapshot of all cryptocurrency holdings at the exchange. The aforementioned entity then combines the data into a Merkel tree, a structure typically used to confirm the validity of block data. Huobi has shared plans to upload another Merkle Tree Proof of Reserves audit within the next month.

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Huobi also reiterated its dedication to prioritizing user interests in its report.

It is also our promise and commitment that users’ assets shall be protected intact, not appropriated, and fully redeemable and withdrawable,” the platform stated.

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