Cryptocurrencies’ exciting and unpredictable world may put even the most seasoned investors on edge. According to recent reports, the digital asset marketplace HTX (formerly Huobi) lost an unprecedented $258 million in withdrawals due to a catastrophic theft. Concerns over the safety and reliability of cryptocurrency platforms have been sown by this occurrence, which has shaken the community to its core. The news of HTX’s massive net outflow began making headlines between November 25 and December 10, when it reopened its doors. Bloomberg News, a reputable source in financial reporting, cited data from DefiLlama to reveal the staggering $258 million loss. This loss was nothing short of a seismic event in the cryptocurrency sphere, leaving many to wonder why.
We must rewind to the security incident that rocked HTX to understand this significant outflow. In this unfortunate event, HTX suffered a substantial loss of $30 million in crypto tokens, leading to the suspension of its trading activities. This incident, which occurred recently, likely contributed to the unease among customers and prompted many to withdraw their funds.
HTX, in response to the alarming outflow, was quick to reassure its users. A spokesperson for the platform informed Bloomberg that the $258 million represents only a tiny fraction of their total reserves. This statement aims to convey the message that HTX remains a stable and robust platform. Furthermore, they emphasized their commitment to providing customers with a secure and seamless trading experience.
Bloomberg’s report revealed an interesting connection – HTX is linked to crypto mogul Justin Sun. Justin Sun is a well-known figure in the crypto world, with ties to the Poloniex platform and the HECO Bridge, a network established by HTX to facilitate transfers between blockchains. Unfortunately, Poloniex and HECO fell victim to hacking last month, resulting in the loss of approximately $200 million in cryptocurrencies.
Problems like this have arisen before with HTX. The hackers have targeted them multiple times in recent years. In a past incident in September, hackers managed to steal $8 million from the platform. This track record of security breaches raises concerns and highlights the need for enhanced security measures in the crypto industry.
HTX’s unfortunate incident is not an isolated case in cryptocurrencies. It comes on the heels of several high-profile crypto sector hacks. Last month, a hacker piloted $27 million in crypto from a wallet connected to Binance, converting the stolen assets into ether and transferring them to other exchanges and bridges.
Cryptocurrency exchanges within the bitcoin industry have been involved in illicit activities, contributing to the sector’s issues. US banking giant JPMorgan Chase CEO Jamie Dimon strongly opposes cryptocurrencies. Digital currencies are Ponzi schemes and scams, he says. He called on the government to shut it down in his Senate Banking Committee testimony, showing the variety of cryptocurrency opinions.
The difficulties confronting the crypto sector have prompted an increase in lobbying attempts by industry participants. Digital asset firms spent $18.9 million on marketing in the first three quarters. It’s up from $16.1 million in 2022. This significant rise in lobbying is especially noteworthy since FTX, a company that spent a lot on lobbying, went out of business. Last year, FTX and other companies spent roughly $22 million on lobbying.
What is HTX Crypto?
We should familiarize ourselves with HTX before getting into the meat of the topic. High-Tech Exchange, or HTX for short, sprang out of nowhere, promising to disrupt the bitcoin market. With the promise of safe, efficient, and transparent trading, it positioned itself as a decentralized exchange platform. HTX is appealing because it can compete with industry heavyweights like Ethereum and Bitcoin.
HTX came off of the crypto stage looking optimistic. Its developers foresaw a future when decentralized exchanges superseded central banks. The project’s native currency, HTX, became quite valuable and received support from crypto fans and investors very fast.
Because of its novel trading methodology and the prospect of reduced costs, HTX was seen by investors as a serious contender to well-established cryptocurrencies such as Bitcoin and Ethereum. Consequently, the HTX community grew, driven by the conviction that they were part of an innovative revolution.
Formerly referred to as Huobi, HTX is an established cryptocurrency exchange. Since 2013, this Chinese-founded group has expanded internationally. HTX has offices in the US, Hong Kong, South Korea, and Japan, in addition to its major office in the Seychelles. The exchange runs one of the largest trade amounts in the world and supports more than 700 coins.
HTX offers a comprehensive suite of services to cater to the diverse needs of cryptocurrency traders. These services include:
1. Spot Trading
HTX allows users to buy and sell cryptocurrencies instantly at current market prices.
2. Margin Trading
For more experienced traders looking to amplify potential gains (and losses), HTX provides margin trading options.
3. Futures Trading
Traders seeking leveraged exposure to cryptocurrencies can engage in futures trading, with leverage of up to 100x for experienced participants.
4. Perpetual Contracts
HTX offers perpetual contracts for cryptocurrencies like Ethereum, allowing traders to speculate on price movements without expiration dates.
5. Additional Features
Beyond trading, HTX offers an over-the-counter (OTC) trading desk, a lending platform, and a staking platform, providing users various avenues to interact with their cryptocurrencies.
HTX underwent a substantial rebranding initiative in September 2023, whereby it changed its name from Huobi. This action was implemented as an element of a more comprehensive approach aimed at broadening its international influence and attracting a more diverse range of users. In addition, it sought to establish a separation between the exchange and its origins as a reaction to China’s regulatory measures against cryptocurrency trading.
Despite its rebranding efforts and global expansion, HTX has faced several controversies recently. In 2020, the US Treasury Department fined the exchange for allegedly processing transactions for sanctioned individuals. Additionally, 2023 saw HTX fall victim to a series of hacking incidents, resulting in the loss of millions of dollars worth of cryptocurrency.
Understanding the Risks
While HTX remains a popular choice for cryptocurrency traders worldwide, it’s crucial to acknowledge the risks associated with trading on any cryptocurrency exchange, including HTX. Here are some essential factors to consider before diving into the world of crypto trading on HTX:
HTX has experienced instances of security breaches in the past. Enable two-factor authentication and employ robust passwords to safeguard your account and valuables.
HTX operates in a regulatory gray area, which is not regulated in any significant jurisdiction. It also suggests that your money can be at risk in a cyberattack or bankruptcy.
The market for cryptocurrencies is notoriously unstable. Be prepared for the possibility of significant gains or losses when trading on HTX or any other crypto exchange.
The HTC Crypto Conundrum
While discussing HTX, addressing the discrepancies and uncertainties surrounding the HTC cryptocurrency is essential. Different sources provide conflicting information about its price and trading activity. CoinCodex reports a price of $0.0051185 with a 24-hour trading volume of $0.009905, while CoinMarketCap suggests a price of 0.00008749 USD with no significant changes in the last 24 hours. BitDegree claims a fee of $0.00; some sources even indicate that HTC is inactive or has insufficient data.
Given these inconsistencies, it’s crucial for anyone considering involvement with HTC crypto to exercise caution and conduct thorough research before making any investment decisions.
AAX: A Reliable Alternative
Considering the difficulties encountered by HTX and similar cryptocurrency exchanges, it may be worthwhile to investigate other platforms for trading Ethereum (ETH) and Bitcoin (BTC). A centralized cryptocurrency exchange (CEX), AAX has several features that new and seasoned traders may use.
AAX offers the following trading features for Bitcoin (BTC) and Ethereum (ETH):
• Spot Trading: Instantly buy and sell BTC and ETH at current market prices.
• Margin Trading: Leverage your position for potentially higher gains (and losses).
• Futures Trading: Engage in BTC and ETH contracts with leverage of up to 100x for experienced traders.
• Perpetual Contracts: Trade ETH without expiry dates or funding fees.
Benefits for BTC and ETH Traders
AAX stands out in several ways, offering numerous advantages to traders in the Bitcoin and Ethereum markets:
Deep Liquidity: The exchange boasts high trading volumes for BTC and ETH, ensuring the smooth execution of orders.
Competitive Fees: AAX features low trading fees and maker rebates, incentivizing active trading.
Secure Platform: Utilizing LSEG Technology, AAX provides institutional-grade security and reliability to safeguard users’ assets.
User-Friendly Interface: AAX is designed to accommodate beginners and experienced traders with an intuitive interface.
Beyond trading, AAX offers staking, DeFi yield farming, and other features that enable users to earn passive income from their crypto holdings.
As of December 21, 2023, at 6:02 AM EST, here are the prices for Bitcoin (BTC) and Ethereum (ETH):
• Virtual Currency: Bitcoin (BTC): USD 16,601.99
• Virtual Ethereum (ETH): USD 1,205.40
A summary of the main points:
|Virtual Bitcoin (BTC)
|Virtual Ethereum (ETH)
|Spot, Margin, Futures, Perpetual
|Spot, Margin, Futures, Perpetual
|Up to 100x
|Up to 100x
|Minimum Trade Size
|0.10% maker, 0.20% taker
|0.10% maker, 0.20% taker
Regarding the trading of Bitcoin and Ethereum, AAX provides a comprehensive platform, competitive fees, ample liquidity, and tools to accommodate any trading style. It is imperative to conduct thorough research prior to making any investment decisions, and it is crucial to bear in mind that cryptocurrency trading entails inherent risk.
The Demise of FTX
Unfortunately, it’s essential to note that as of December 21, 2023, the FTX cryptocurrency exchange is no longer operational. The business filed for bankruptcy in November 2022, ending all trading activities.
FTX’s downfall began when concerns about its financial stability and close relationship with Alameda Research, another crypto firm, came to light. These concerns led to customers’ massive withdrawal of funds, triggering a liquidity crisis. On November 11, 2022, FTX officially filed for Chapter 11 bankruptcy in the United States.
HTX vs FTX
Putting up a thorough table that compares HTX with FTX is no longer possible or totally accurate. Although they are/were cryptocurrency exchanges, it is difficult to draw direct parallels since FTX declared bankruptcy in November 2022 and stopped operating.
But in order to give you some background, below is a table that highlights some important features of both exchanges prior to FTX closing:
|HTX (Formerly Huobi)
|FTX (No longer operational)
|Defunct (Bankrupt since November 2022)
|Spot, Margin, Futures, OTC
|Spot, Margin, Futures, Options
|Global expansion, metaverse
|Derivatives, institutional investors
|Controversy surrounding rebranding from Huobi
|Concerns about financial stability and close ties to Alameda Research
|LSEG technology for institutional-grade security
|Allegations of security vulnerabilities and lax oversight
Opportunities and threats abound in the ever-changing Bitcoin sector. The latest HTX event emphasizes the need for safety measures and thorough research before trading cryptocurrencies. Investors and traders in the crypto market would do well to keep up with the latest news, proceed with care, and look into reputable alternatives like AAX as the market evolves.