According to local sources, some China-based cryptocurrency exchanges refuse to trade in various altcoins/tokens. Exchanges have been worried about the recent news about Justin Sun.
Chinese exchanges reject these altcoin projects due to FUD news
As Chinese Blockchain researcher Wu Blockchain reported, “Some Chinese crypto exchanges have started not accepting TRC20 USDT and requiring users to transact on ERC20 USDT.” The researcher mentions that this move of the stock markets may be related to the FUD news that has emerged about Justin Sun and TRON recently.
cryptocoin.com In this article, we have included what is happening around Justin Sun and the crypto money exchange Huobi, where he is a consultant. The new developments from China reported by Wu Blockchain are as follows…
Recently, some OTC merchants in the Chinese market said that they no longer accept TRC20 USDT, and need users to go to the exchange to exchange for ERC20 USDT before trading. It is suspected to be related to the Justin Sun and TRON FUD spread by the community. Exclusive
— Wu Blockchain (@WuBlockchain) January 12, 2023
Exchanges have suspended trading of TRC20 USDT since January 9
According to Wu’s report, Matrixport, the cryptocurrency exchange founded by Jihan Wu, has been suspending deposits and withdrawals of TRC20 USDT since the 9th. Also, the exchange has not made any statement on this matter so far. According to the researcher, another reason for this could be the TRC20’s failure to meet anti-money laundering requirements:
As for their refusal to accept TRC20 USDT for OTC transactions, there is an explanation that tools like Chainalysis do not meet anti-money laundering requirements, thus being rejected by institutions and relatively compliant OTCs.
Altcoin transactions between Justin Sun and Binance scare
The data shows that $100 million USDC and USDT tokens were transferred from a wallet address associated with Justin Sun to an unidentified wallet. Justin Sun, the secret owner of Huobi Global, confirmed on Thursday that the company plans to leave 20% of its workforce. Huobi’s domestic cryptocurrency price has dropped almost 12% in the last 24 hours as a result of this announcement. However, data shows that Justin Sun transferred enormous amounts of money despite this decline.
According to CoinGabbar, Justin Sun’s wallet address transferred $100 million worth of USDC and USDT tokens to an unidentified wallet. He transferred $50,027 worth of USDT to a different wallet. While Justin bought the same number of USDT tokens as before.
In the past 24 hours, Huobi has seen a significant increase in net outflows
$60.9M* of the $94.2M* net outflow in the past week occurred in the past day alone
*Contains Ethereum, Avalanche, BNB Chain, Fantom, & Polygon flows pic.twitter.com/JV1Tg13QMY
— Nansen 🧭 (@nansen_ai) January 6, 2023
These important transactions were seen during the decline in the value of TRON (TRX) and Huobi token. Prior to that, data had indicated that the TRON-based stablecoin USDD has severely lost its price stability and may collapse in the near future due to uncertainty. According to reports, it plans to re-contract all 1,100 employees at Huobi’s China headquarters. In the midst of all this news, it was slightly bullish with TRX.
