Rebranding Fuels Comparisons Between Huobi, FTX

According to a blog post published on the exchange’s website, the new name represents Huobi (H), Sun’s Tron blockchain (T), and the term “exchange” (X).

This update goes into effect simultaneously with Huobi’s tenth anniversary, denoted by the Roman numeral X.

On the other hand, it has been compared to FTX, a cryptocurrency exchange that caused a lot of commotion in the market at the end of the previous year.

Even today, this continues to be a source of stress for business professionals.

The fact that FTX relied so heavily on its native exchange token, FTT, which it used as collateral and value, also contributed to the decline of the exchange.

Additionally, FTX held substantial interests in tokens associated with initiatives backed by the company’s founder, Sam Bankman-Fried.

These tokens are typically known as “Sam’s Coins.” The value of these tokens plummeted when FTX’s reputation began to suffer.

Bloomberg reports that the preponderance of Huobi’s reserves consists of tokens associated with Justin Sun.

Approximately sixty percent of Huobi’s total funds consist of these tokens, which raises concerns about the company’s sensitivity to price fluctuations in Sun’s tokens.

In addition, Huobi’s holdings of the extensively traded cryptocurrency USDT have been decreasing.

Given that Sun admitted ownership of “tens of millions” of HT tokens and continued to invest in the platform, concerns have been raised about the level of separation between Huobi and Justin Sun.

The fact that this rebranding co-occurs and that Sam Bankman-Fried is on trial for his involvement in FTX’s difficulties fuels comparisons between the two exchanges.