Kategorie: Crypto Analysis

Key Takeaways

• Crypto exchange Huobi is reportedly laying off 20% of its workforce and has requested employees take their salaries in stablecoins
• Internal communication has reportedly been suspended in order to quell discontent
• Customers are pulling their funds from the exchange, while volume is down 23%
• Its native token has fallen 10%. Reports had previously singled out Huobi as the exchange which relies the most on its native token to denominate its reserves
• While there is no concrete evidence of anything untoward happening with customer reserves, investors would be wise to withdraw the funds until the dust settles, given what else has transpired in the crypto industry over the last year

 

It’s groundhog day in crypto. Yet another centralised crypto exchange is coming another fire, this time Huobi. 

What is happening Huobi?

Chinese crypto entrepreneur Justin Sun, who is the founder of cryptocurrency Tron and also sits on Huobi’s board, announced that the exchange was to lay off about 20% of its workforce. 

Further reports claimed that in addition to a dramatic reduction of the workforce, employees were required to take their salaries in stablecoins, while internal communication channels were shut in order to quell discontent. 

While the story is still emerging, this is obviously…not good. Many ominous screenshots of employees trying to get into systems and communicate with one another were being shared all over Twitter. Reports emerged, understandably, that employees were enraged that should they refuse to accept their salaries in stablecoins, they would be dismissed. 

Justin Sun’s HR is communicating with all Huobi employees to change the salary form from fiat currency to USDT/USDC; employees who cannot accept it may be dismissed. The move sparked protests from some employees. Exclusive https://t.co/QB4sjDyHc7

— Wu Blockchain (@WuBlockchain) January 4, 2023

Funds leave Huobi swiftly

The market waited no time in reacting. While there is no confirmed evidence of anything wrong with Huobi’s reserves or solvency, it has been a rough year for crypto investors and the demise of FTX and Sam Bankman-Fried is all-too-raw for so many. 

As a result, funds were pulled swiftly from Huobi. The below chart from DefiLlama shows the USD outflows picking up. Since December 15^th, when it received $87.9 million in USD inflows, there has been over $200 million of outflows. $75.1 million of these outflows has been I the last 24 hours. 

 During the last 24 hours, volume on the exchange is also down 23% to $295 million from $510 million. 

Huobi’s exchange token is also feeling the pain. Crypto investors will be particularly sensitive to these native tokens, given FTT’s role in the FTX collapse and the fact that it has become increasingly obvious that so many simply serve minimal purpose. 

The Huobi token has halved since late October. It is down over 10% in the last 24 hours or so since the story of Huobi layoffs emerged. 

Is Huobi safe to hold assets on?

While drama about layoffs, employee discontent and falls in volume is concerning, this should not have any effect on the safety of Huobi. At least, in theory it shouldn’t. But this is crypto, and if this year has taught us anything, it is that things are often not as they appear.

As I have written about repeatedly, transparency is abhorrent when it comes to these centralised crypto players. There is simply no way to know for sure what is going on behind the scenes at any of them.

The presence of an exchange token also muddies the water. Is this token being accepted as collateral for liabilities? Again, there is no evidence to suggest it is, but there is also no evidence to suggest it isn’t.

Looking at data from blockchain analytics platform Nansen, Huobi’s native token makes up 32% of its total allocation, while Justin Sun’s TRX token comprises an additional 17%. A report from CryptoQuant also shows that of all the exchanges, Huobi relies the most on its own token to denominate its reserves.

Again, while there is no evidence to suggest anything untoward is happening here, the influence of a native token definitely muddies the water.

Customers making right call in withdrawing funds

With the doubt on the platform and the recent chaos in the crypto industry last year, it makes perfect sense that customers are pulling their funds. Similar to how such a large chunk of funds were pulled from exchanges in the wake of the FTX collapse, this is simply sound risk management.

If Huobi is perfectly safe and all returns to normal – and again, there is nothing concrete to suggest it won’t – then customers can simply deposit their funds back onto the platform. But this is an unregulated, opaque entity that is impossible to make any sort of financial assessment on. That means it is a risk, and with all the madness of the last 24 hours, it would be a questionable move from a risk management perspective to not at least temporarily pull funds and wait until the dust settles.

The post Is Huobi safe? Why customers should be withdrawing funds appeared first on CoinJournal.

• Huobi Token is the best performer amongst the top 100 cryptocurrencies by market cap so far today.

• The Huobi crypto exchange is set to lay off 20% of its workers amidst the crypto winter.

• The broader crypto market could end the week in the red zone as prices tumble.

Huobi to cut 20% of staff

Tron founder Justin Sun told Reuters earlier today that the Huobi crypto exchange is set to lay off about 20% of its staff. Sun is a member of Huobi’s global advisory board, and he revealed that the move is part of the company’s structural adjustment to the current market conditions.

This latest cryptocurrency news saw Huobi Token, the native token of the Huobi exchange, rally by more than 3% in the last 24 hours. HT is the best performer amongst the top 100 cryptocurrencies by market cap today. At press time, the price of Huobi Token stands at $4.85. 

The broader cryptocurrency market has been underperforming over the last few hours. The total crypto market cap currently stands at $814 billion, down by less than 1% in the last 24 hours.

Key levels to watch

The HT/USDT 4-hour chart is bearish despite its positive performance over the last few hours. However, the technical indicators show that HT is outperforming the broader market.

The MACD line is below the neutral zone, indicating that the bears are in control. However, with the line moving upward, the bulls are aiming to regain control of the HT market.

The 14-day relative strength index of 38 shows that HT is currently out of the oversold region. 

If the bullish trend continues, HT could surge past the $5.08 resistance level in the near term. However, it would need the support of the broader crypto market before it can breach the $5.4 resistance level over the next few days. 

Where to buy Huobi Token now

Skilling

Skilling is a Scandinavian based cryptocurrency broker which has a desktop website as well as apps for iOS and Android devices. It supports over 50 cryptocurrencies and it has a demo account to allow users to gain familiarity with the platform. Skilling has no hidden fees, it is an officially regulated broker and it supports a wide range of payment methods.

Buy HT with Skilling today Disclaimer

KuCoin

Kucoin is a cryptocurrency exchange which offers over 200 cryptocurrencies. Kucoin has a wide range of services, such as; a built-in peer-to-peer exchange, spot and margin trading, bank level security and a wide range of accepted payment methods. Users can benefit from a beginner-friendly interface and relatively low fees.

Buy HT with KuCoin today

The post Huobi Token soars by more than 3% today: Here is why appeared first on CoinJournal.

According to leading industry experts, GameFi and play-to-earn (P2E) are set to explode in 2023-2025. New market entrants in this sector are already gaining significant traction with investors, often at the expense of more established players in the wider market. The Monero price prediction 2025 illustrates this trend. It’s clear that many investors are now choosing crypto gaming stars such as Metacade over Monero. Read on to understand why.

Metacade is set to star

In just a short time, rising star Metacade has become one of the most talked about players in the GameFi sector. Metacade stands to lead well, at the convergence of 3 key areas: metaverse, arcade games, and cryptos. The platform’s goal is to become the #1 Web3 community hub for gamers, developers, investors and crypto fanatics. 

Metacade is proving hugely popular with investors, because it offers something of real value to crypto gaming. Blockchain gamers will enjoy an unrivalled choice of games with genuine P2E potential. Developers benefit from a platform where they can test and market their games, run competitions, and find new staff. And investors and crypto fans can generate income through profitable investment and staking opportunities. 

How Metacade Works

Mark Twain once famously said “Find a job you enjoy doing, and you will never have to work a day in your life.” That sentiment definitely applies to Metacade gamers, who can earn income through its Play2Earn games, Compete2Earn contests and tournaments, Create2Earn content creation, and Work2Earn testing and employment. Metacade directly connects players and developers, opening up opportunities for market research, new games and recruitment. 

Underlining its commitment to its members, Metacade is creating exciting potential with its Metagrants initiative. Metagrants provide funding for designers to develop exciting new games on the platform. Factor in Metacade’s community-based model – ultimately leading to the creation of a full DAO – and it’s clear that all parts of the Metacade hub will benefit from the synergies across the group.

Monero’s secret

The premise behind Monero (XMR) is simple: it offers peer-to-peer currency transactions that are secret, anonymous and untraceable. That smart functionality is Monero (XMR)’s greatest strength – and its greatest weakness. There are plenty of people who have legitimate reasons for wanting to keep their businesses private. But there are also others who want to make secret transactions in order to cover up illegal activities like drug dealing, corruption or fraud.

In the aftermath of the FTX crash, people who lost large sums of money are calling for the introduction of tighter and tougher regulations. It’s clear that if organizations like the SEC follow through on regulation, it could make Monero (XMR)’s position challenging at best, and untenable at worst.

Metacade (MCADE) tops Monero (XMR)

While Monero must worry about the impact of new regulations, Metacade has no such fears. It can look forward to being part of a market sector that is only going one way. Metacade’s powerful business model, connecting all sides of the crypto gaming community, has won favor with expert analysts, developers, gamers and investors alike. 

What’s more, some seasoned observers are predicting great things for the company’s share price when it launches – especially when taking advantage of their presale offer. All things considered, it’s easy to see why Metacade is clearly the best investment opportunity when compared to Monero.

Metacade (MCADE) Price Prediction

You can still buy into Metacade at the stage 1 prelaunch price of $0.01. The predicted launch price already looks like it will ensure a favorable return for early investors. But it’s when the P2E market really starts to take off that things could get interesting. 

Investors in The Sandbox (SAND) at launch saw a 100x ROI at the height of the market, and there’s a chance Metacade could replicate that performance between 2023 and 2025, making it a better bet than the Monero price prediction.

But you need to be quick to make the most of the Metacade presale, as the first phase is selling out fast.

Monero (XMR) Price Prediction

When making the Monero price prediction up to 2025, it’s important to factor in a number of considerations. First, if volumes stay low, people will not need to use Monero. Second, if regulators push hard for greater transparency, it could spell trouble for Monero’s secret services. And third, there is always the chance that Monero could be hacked, thereby damaging its reputation. 

For those reasons, the Monero price prediction 2025 is for no increase on the end 2022 price of $145.38. 

Investors Prefer Metacade to Monero

Choosing between Metacade and Monero is not a difficult decision. One is an exciting, innovative newcomer in a booming sector. The other offers a service which could very realistically be outlawed by regulators looking to clean up the crypto industry. It’s no wonder that investors are choosing Metacade (MCADE) over Monero (XMR). You can join them by taking the opportunity to buy at the presale price.

You can buy XMR at eToro here.

You can participate in the Metacade presale here.

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