Huobi Exchange, a cryptocurrency marketplace, has delisted 33 tokens due to high trade risk and low volume.
The most recent turn of events comes as the cryptocurrency exchange Huobi continues to suffer from a decline in market share, which has already reached a level of less than 4%.
The cryptocurrency exchange Huobi announced (1) that they were delisting a total of 33 tokens on Wednesday, January 11, citing trading hazards and low volumes on the site as the reasons for their decision.
The List of Delisted Tokens
On January 16, the trading of these coins will be temporarily halted, and after that, they will be delisted from exchanges for good. According to Huobi's statement, most of the tokens in question violate several sections of the Huobi Token Management Rules. These rules are as follows:
"Huobi retains the right, contingent on the gravity of the situation, to conceal or suspend trading in accordance with the following occurrences: 1) [Tokens] that have a warning label that reads "ST" and have not been canceled during the first thirty days. 2) [Tokens] That do not meet the threshold of having a daily trading volume that is at least $50,000."
ABT, ATP, APN, AST, DIE, DHT, DFA, EDEN, GEAR, HC, INDI, IOI, INV, IRIS, GCOIN, GOF, KMA, MTA, NAS, OPUL, PEARL, PRIMATE, QASH, SMT, SLC, SKU, SOC, STC, TALK, VALUE, WILD, and YAM are some of the tokens that trade in crypto currencies.
Only after a string of four significant triggering events did Huobi decide to delist the tokens.
- The project could be delayed if project teams miss the deadline to revise their quarterly results or fail to submit their semimonthly reports for two quarters.
- There is not a single one of the trading pairs that has maintained a daily average trading volume of at least 50,000 dollars for the past 15 days.
- Because of this, the all-encompassing evaluation of "inquiry, regular review, special investigation, or on-site investigation" must be completed to provide the "ST" marking.
- Huobi found further instances that constitute major breaches of the Regulations in their investigation.
Trouble Looming for Huobi
Huobi, one of the world's most important crypto currency exchanges, has been suffering a steady decline in market share since 2020. Huobi's market share declined from over 22% in 2020 to just 4% in 2022, the most recent year for which data is available.
In the study report that Kaiko issued, it was noted that the exchange owned by Justin Sun remained "indisputably the most significant loser" during the bear market for crypto currencies.
On the other hand, Huobi's native stablecoin USDD has kept trading below its dollar peg despite being pegged to the dollar. The cryptocurrency exchange is facing an "uphill challenge" due to this development.
Stablecoins are issued on the Tron blockchain by the TRON DAO Reserve, which is also responsible for ensuring that the value of these coins is maintained relative to USD.
On the other hand, Huobi's financial health has recently been called into doubt because consumers withdrew more than $100 million in the previous week. As a result, to restore users' faith in the platform, Justin Sun moved one hundred million dollars worth of USDT and USDC off Binance to Huobi.