Unraveling the Link Between Justin Sun, Huobi & USDT: Stablecoins in Jeopardy?

• Justin Sun gets accused of malpractice, speculation around Huobi’s insolvency surfaces, and USDT is stuck in the crossfire.
• Adam Cochran links the USDT sell-off to Binance and suggests that Huobi executives and Tron personnel were questioned by police.
• His investigation into Tron’s stUSDT revealed a stark contrast between claimed stakers and the token’s actual distribution.

Malpractice Accusations Against Justin Sun

Justin Sun has been accused of malpractice by a Twitter user, leading to speculation that Huobi may be insolvent. This would have negative impacts on USDT, which is currently one of the top performers in the stablecoin sector.

Binance Offloading Large Amounts of USDT

Adam Cochran, managing partner at Cinneamhain Ventures and contributor to yearn finance, suggested that the trail of the USDT sell-offs starts with Binance. He stated that based on past behavior with their past selling of FTT token, it is safe to assume that Binance gets wind of risky assets ahead of time. Over the last few days it was observed that Binance was offloading large amounts of USDT in bulk.

Connection Between Justin Sun and Huobi Insolvency

Adam believes there could be a connection between Justin Sun’s behavior and Huobi’s potential insolvency. He pointed out how weeks after the decline of USDT on Huobi, Sun launched stUSDT – a staked USDT product launched by Tron. His investigation into this revealed a stark contrast between claimed stakers and the token’s actual distribution; Tron’s website asserted it had 351,380 stakers but blockchain data exposed nearly 98% was held directly by Sun or Huobi.

Huobi Denies Claims

A representative from Huobi denied all claims regarding its potential insolvency due to Justin Sun’s behavior. They did not provide any evidence as to why they are denying these allegations though.

Impact On Stablecoins

It remains unclear what impact this will have on stablecoins as a whole if these accusations prove to be true or false in the future; however it does highlight how quickly things can change in this space – even for something as resilient as stablecoins such as USDT have been lately

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