Cryptocurrency exchange HTX, previously known as Huobi, has unexpectedly disabled its proof-of-deposit feature.
This observation was noted today by a prominent fintech analyst. Adam Cochran, Managing Partner at Cinneamhain Ventures. These developments are consistent with the problems faced by TrueUSD (TUSD), a stablecoin reportedly linked to HTX stakeholder Justin Sun, which has been struggling to maintain its intended $1 value for more than two weeks.
Cochran also noted that HTX’s ETH holdings are only worth $120 million, according to real-time data from DefiLlama, but a recent audit reported that they are worth nearly $300 million.
This morning, HTX’s Proof of Reserves webpage showed no information about the exchange’s cryptocurrency holdings. Key data such as reserve ratio, wallet balance, and total user assets were temporarily not displayed on the page. The page has since been restored, but the timing of this brief downtime is questionable, especially considering the ongoing issues surrounding TUSD.
The incident follows increased scrutiny of TUSD, particularly for its perceived lack of full support. According to a report by CoinMarketCap, since January 7, the trading value of TUSD has fallen below $1.
Concerns were heightened earlier this month when TrueUSD failed to provide timely evidence confirming it had adequate US dollar reserves to back its stablecoin. This lack of transparency has fueled speculation about the possibility that TrueUSD may be undercollateralized.