HECO's top brand switches to BSC Huobi and what will Li Lin do at the crossroads?
Wu said the author | Colin Wu
Editor of this issue | Colin Wu
When Li Lin regained his freedom, it coincided with HECO thunderstorms and multiple outages. Competitor Binance has greatly surpassed, and OTC, which has its own advantage, is also in a serious situation. Huobi seems to have reached a crossroads, what will happen to it in the future?
MDEX, the leading project created by Huobi Ecosystem Chain HECO, recently joined Binance Smart Chain BSC, and TVL (total locked value) surpassed 2 billion US dollars in a short period of time. MDEX has become a rare project that has obtained more than 2 billion US dollars in TVL at the same time on a double chain.
The trading volume of MDEX on BSC has surpassed HECO, and the profit is also higher. It is reported that many other HECO projects are “queuing up” to migrate to BSC. Although there is moisture in the data, judging from the comparison, the increase in BSC is very obvious, while HECO fluctuates greatly up and down.
The beginning of everything needs to go back to November 2020. On November 2, Huobi's COO was investigated by Shanxi and information came out. Starting November 2, Huobi's bitcoins “frantically” poured into Binance for a few days. Coindesk's calculations show that from November 2 to November 11, a total of 18,652 bitcoins flowed into Binance from Huobi.Until then, however, the flow of Bitcoin was in the opposite direction.
From August to November 2020, Bitcoin continued to flow from Binance to Huobi. Huobi's relatively excellent product experience and Greater China ecosystem and customer resources have enabled it to compete with Binance and even surpass Binance in some fields. Although Huobi derivatives were launched the latest, they are developing the fastest. Reverse perpetuity, and the overall contract once ranked first in the entire network.
The COO and CEO were investigated one after another, and Du Jun, the co-founder of Huobi in Singapore, is at risk. Huobi did not stop withdrawals and formed a leading group headed by Du Jun, CTO, and CSO. Du Jun recruited the old department and launched HECO against BSC. At one point, almost all crypto developers in China were pouring in. The top MDEX data on HECO even surpasses the sum of the other top DEXs. The maximum HT, which has been in vain for a long time, is over 25. This happened almost unimaginable when the building was about to fall.
However, all luck has its price already paid.
HECO's recklessness, irregularity, and insider collusion are beginning to show bad results. The landmark event was that HBO, one of the highest-capitalized projects, had serious problems on March 1, and the price almost suddenly went back to zero. HBO's official explanation is that it was supposed to do a production reduction test and mistakenly transferred 5 million dollars into the LP pool. Retail investors from all over the world called the police one after another to file a case. At the same time, it was revealed that Du Jun's spiritual tracking security provides security audit services for the HECO project and was attacked by netizens.
Essentially, all malicious acts such as harvesting, running errands, and losses that inevitably occur in the public chain can be tolerated by BSC, but not all of the founders and customers can withstand domestic Huobi. After the HBO incident, HECO began to completely shrink, and Du Jun basically stopped speaking about HECO.
What's even more embarrassing is that the HBO incident happened at a time when Huobi No. 12 figures Li Lin and Zhu Jiawei were regaining their freedom. The turmoil at HECO is unimaginable at this time.On March 9, 2021, Huobi founder Li Lin returned to the company and started working normally. COO Zhu Jiawei resumed work in mid-February. Li Lin regained his freedom until recently that Huobi began listing coins normally. FILDA and CAN in the HECO ecosystem have been launched one after another.
The missed house coincided with a series of rainy days, and Huobi also had more technical problems. On the evening of February 19, Huobi first experienced a serious network outage due to the power failure of the AWS Tokyo node cooling system. Recently, Dogecoin has skyrocketed and the entire network has plummeted twice. Huobi has once again experienced the most serious failure in mainstream exchanges. There are many opinions about the reasons. There was also an attack on CTO Ali Style by Huobi's internal employees.
The compliance business of Huobi's Hong Kong listed entities appears to be progressing rapidly. Currently, it has raised 50 million US dollars, but profits should not be high. Binance's profit for the first quarter of 2021 is likely to have surpassed $3 billion. The revenue and profits of the compliance business are still far from being compared to exchanges.
Another blow to Huobi's core business is that since last year, the Chinese government has cracked down on cryptocurrencies suspected of laundering money for telecom fraud, gambling, etc. Huobi's RMB OTC trading volume far exceeds that of other exchanges combined. This not only caused damage to the Huobi brand (many customers had their cards frozen after Huobi transactions), but also posed a huge security risk to Huobi itself.
Fighting against Binance in an uncertain environment in China, the Huobi team has proven its strength. Although HT has been repeatedly ridiculed by netizens for its sluggish performance, we still believe that Huobi is the best ecosystem builder in Greater China, and if its team comes overseas early, it won't necessarily be weaker than Binance. Top international projects also often only accept investment from Huobi in Greater China.
However, a serious situation is just around the corner. Binance's dominance seems unshakable. The future of OTC will only get worse. What will Li Lin do? After OK Xu Mingxing was investigated, Huobi and Li Lin held a rare trip to Guizhou covering the national currency industry. The video of the drinking speech went viral all over the internet. Whether Li Lin is bolder or saying goodbye, this seems like a metaphor.
