• Justin Sun has been accused of malpractice by a Twitter user, leading to speculation around Huobi’s insolvency and a possible negative impact on USDT.
• Adam Cochran believes Binance had prior knowledge of the USDT sell-off, and that this could be linked to Justin Sun’s launch of stUSDT, Tron’s new staked USDT product.
• Tron’s website claims there are 351,380 stakers for stUSDT but blockchain data suggests nearly 98% is held by either Sun or Huobi.
Stablecoins Unraveling the link between Justin Sun, Huobi & USDT
Accusations Against Justin Sun
Twitter user recently accused Justin Sun of malpractice which led to speculation around Huobi’s insolvency and the possibility of negative impacts on USDT. This caused a sell-off in USDT across various exchanges.
Adam Cochran and Binance
Managing partner at Cinneamhnain Ventures Adam Cochran suggested that Binance was aware beforehand about this risky asset and started selling off USDT in bulk weeks after the decline in value of USDT on Huobi.
Justin Sun’s Role
Adam pointed out that Justin Sun may have something to do with the sell-offs due to his launch of Tron’s new staked USDT product – stUSDT. He further stated that despite their website claiming there are 351,380 stakers for it, blockchain data suggests nearly 98% is held by either himself or Huobi directly.
Huobi Representative Denies Claims
A representative from Huobi denied these claims but it remains unclear if they will have any serious effects on the value of stablecoins like Tether moving forward.
Conclusion
The stability of stablecoins such as Tether can be seriously affected by external events such as those surrounding Justin Sun and other related parties so market participants should keep an eye out for any potential risks when investing in them.
