– Huobi released data on the burn rate of the HT token.
– The report lacks crucial financial data, raising concerns about transparency.
– Justin Sun, the likely owner of Huobi, faces legal trouble with the SEC.
In the crypto space, transparency is the foundation of all trust.Despite this, there were notable omissions from Huobi’s latest Q1 financial report, leading to questions about the exchange’s transparency as its owner, Justin Sun, faces legal troubles.
Huobi, one of the world’s largest crypto exchanges, released a report for the first quarter of 2023 on Saturday, April 15.The document was notably
scant on crucial financial details.
Huobi Report Lacks Financial Data
While Huobi’s Q1 report gives information about token burns, it lacks basic data such as the firm’s revenue.
In the report, Huobi reported burning 827,226 HT tokens, worth about $3.31 million.This resulted in a circulating deflation rate of 0.3826%.The exchange also touted its partnership with Gala Games, a blockchain gaming platform, and unveiled plans for a Huobi Visa Card.
According to Huobi, the exchange allocates 20% of its revenue to burning HT to keep up demand for the token.The token burn rate indicates that Huobi’s revenue for the quarter was just $15.55 million.However, Huobi did not disclose its revenue numbers in its Q1 report.
Revenue numbers are not the only figures missing from the report.Huobi’s Q1 2023 report lacks essential financial data, such as operating expenses, net profit, and other key metrics.
A standard
quarterly earnings report typically includes information on revenue, net income, earnings per share, and operating expenses, among other financial metrics.
Financial reports typically offer a detailed look into a company’s financial health, allowing users and investors to evaluate its performance and make educated decisions.
Huobi’s report lacks any of these figures, making it difficult to assess its potential performance.
Huobi in Trouble as SEC Sues Justin Sun
Huobi’s report highlights the issues in the exchange, as its likely owner Justin Sun faces legal trouble in the US.
The US Securities and Exchange Commission (SEC) sued Sun for alleged
securities fraud and other offenses in March.The SEC claims Sun sold unregistered securities, including Tron (TRX) and BitTorrent Token (BTT).
Justin Sun’s official capacity at Huobi is that of an advisor.However, reports suggest that he is the majority owner of the HT token.Moreover, Sun frequently tweets on Huobi’s behalf.
In April, Sun denied trying to
sell Huobi to Binance, which allegedly turned down the deal due to regulatory concerns.
On the Flipside
– Huobi is not a publicly traded company, meaning it does not have to publish detailed quarterly reports.
– The HT token is set up to benefit from Huobi’s revenue.This is similar to the
FTX token, which US regulators deemed a security.
– HT ownership is highly concentrated, with the top 10 holders
owning 98.49%of the Huobi Token.
Why You Should Care
A lack of transparency is one of the most glaring issues in the crypto space, which is also why US regulators have been clamping down particularly harshly on the industry.
Read about Huobi owner Justin Sun:
Justin Sun: From Ripple Employee to Tron Founder
Read about Solana’s latest partnership:.
