Babbitt Original丨Huobi investigation storm, are you the frightened bird?

The "No. 2" curse continues.

Following the 1,000-dollar big negative line on August 2, the 600-dollar small waterfall on September 2, and the 300-dollar drop on October 2, Bitcoin once again experienced a correction on November 2, falling from the intraday high of $13,830 all the way to $13,200, with a total of $116 million in long positions liquidated throughout the day. The "No. 2" curse has appeared for four consecutive months, but the magic of this day is more than that.

Starting from the evening of November 2, various rumors began to appear in WeChat communities. "Are there any coins on Huobi? Run away." "Huobi's No. 2 figure is under investigation! Hurry up and withdraw your coins." Since OKEx suspended withdrawals, panic has begun to spread in the circle, and the continuous spread of various news has made this emotion continue to ferment. Du Jun, who returned to Huobi not long ago, responded immediately: "Thank you for your concern, Huobi is doing well. User asset security is the first priority. Welcome to test recharge and withdrawal~" But it seems that it cannot calm everyone's panic.

At 7pm, HT began to plummet, and many investors sold their chips to avoid becoming "happy beans". At around 8pm, Whale Alert data showed that within 30 minutes, the address labeled Huobi exchange frequently transferred several USDT transactions to the address labeled Bitfinex exchange within 30 minutes, with a total amount of about 100 million US dollars, completed through the TRON blockchain. In addition, the Huobi address also transferred more than 10 million USDC to the FTX address. The large amount of USDT transfer was interpreted by many people as a big investor fleeing, which brought the panic to a climax that night. HT accelerated its decline, from $3.88 to $3.58, the lowest point of the day, within an hour.

HT price trend source QKL123

Although HT rebounded quickly after hitting the bottom and stopped the downward trend, USDT's OTC trading began to become the protagonist of the event. From 21:00, USDT's OTC price began to fall and continued to accelerate. AICoin data showed that Huobi Global's USDT OTC price once fell to 6.31, while the US dollar exchange rate was about 6.68 at the time. In fact, the actual order price on Huobi OTC was particularly tragic, with a price of 5.82 at one point. Huobi's USDT plummeted, which also led to Binance's USDT continuing to decline. It seems that the entire USDT OTC market is collapsing.

In the panic, many investors suffered heavy losses. "What a miserable day. Bitcoin just dropped by 3 points, and when I switched to USDT, USDT dropped by 4 points." Huobi, the company at the center of the incident, was also pushed to the top of Weibo's hot searches.

At 21:35, Huobi responded to the large outflow of USDT. Huobi said that everything is normal at present, and the large outflow is a normal USDT multi-chain liquidity adjustment. A person related to Huobi said: "We also operate it normally. Please do not believe in rumors or spread them. There is no need to panic. You can check the historical chain records and you can tell the authenticity at a glance. Later, Beijing Lian'an also confirmed the news. It believes that Huobi's large USDT transfer is a cross-chain adjustment, and its Ethereum address has received the return USDT.

After many users found that there seemed to be no problem with withdrawing money and no big players were frantically transferring USDT, HT rebounded quickly, reaching $3.9 at one point, and the USDT OTC price also experienced a V-shaped reversal. Although there was still a certain discount, it basically returned to the normal price range. At the same time, Bitcoin also continued to rebound, reaching $13,700 in the early morning, and was temporarily reported at $13,555 as of press time.

The magical day finally came to an end. So, who is Huobi’s No. 2 figure? Has he been taken away?

Wu Blockchain published an article in the morning stating that multiple sources confirmed that Huobi COO was under investigation and directly pointed out that the second-in-command was Zhu Jiawei.

Huobi's No. 2 figure is under investigation, and the sell-off of HT is a normal market reaction. But what puzzles me is why investors are panicking and selling USDT? Is there a necessary connection between the two? After OKEx suspended withdrawals, Du Jun quickly returned to Huobi. He also said in his circle of friends: "Li Lin and I didn't take the same flight or the same car before. Now we can't be in the same country. It's so hard to be apart~" Combined with Huobi's previously promoted multi-signature technology, the words have hinted at its overseas private key manager's identity, and it is highly likely that there will be no problem of being unable to withdraw money. Investors seem to be a little scared.

The exchange is in constant turmoil. Obviously, the best way is to put the coins in your own wallet. After all, "not your keys, not your coins". Be a good coin holder and say goodbye to unnecessary panic.

Friends who have money in the exchange, if you encounter any problems, please stay calm and don't be overly nervous.