DeFi Analyst Raising Concern about Huobi Solvency, Citing Misuse of $USDT Asset

Famous Defi analyst Adam Cochran published on twitter with his concern about Crypto exchange Huobi's solvency.

According to Defillama data, Huobi has total asset of $2.5 billion, which consist of 35.44% of BTC, 26.5% of TRX, 6.8% of HBTC, and 20.4% of HT. These add up to almost 90% of all assets. The largest stablecoin asset is USDT, which only accounts for 1.9% of total assets.

Moreover, USDT assets have declined rapidly since July, from over $500 million to currently only $48 million. The decline in USDT might be due to the launch of stUSDT, a product provides above 4% yield to users who stake their USDT. The staked USDT will be converted to US dollar and to purchase U.S. Government bond.

However, Defi analyst Adam Cochran questioned the product, and claimed there is no on-chain evidence that those USDT have been redeemed into U.S. Dollar. He further claims a significant portion of these USDT were actually sent to other Defi projects on Tron, such as JustLend.