- Justin Sun’s bold $190M DAI mint shakes the DeFi landscape.
- Huobi faces $64M outflow amid exec arrest rumors.
- Ties to gambling sites could jeopardize Huobi’s future.
TRON’s founder, Justin Sun, minted a jaw-dropping 77.8 million DAI using stETH tokens valued at $190 million as collateral, according to an on-chain smart money tracker, Lookonchain. This audacious move, guaranteeing him a potential annual reward of $6.22 million based on the Maker protocol’s 8% APY, has again thrust Sun into the limelight.
— Lookonchain (@lookonchain) August 10, 2023
But the DeFi theatre doesn’t end here. With massive outflows and misconduct allegations circling the Huobi exchange, the crypto community grapples with rumors, transactions, and dramatic shifts in total value locked (TVL).
Sun, never one to shy from the headlines, deftly used the Maker protocol’s offering to add another chapter to his dynamic financial narrative. By backing DAI with stETH, he stands to rake in a cool $17,000 daily. Yet, this DeFi maneuver is more than just an individual play; it poses questions on the ripple effects such large-scale operations may have on the broader DeFi terrain, according to experts.
The plot thickens when a series of mysterious transactions emerge. A TRON address believed to be Sun’s recently moved 200 million USDT from JustLend, a Tron-centric lending platform, to the Huobi cryptocurrency exchange. This same address, operating within the Ethereum framework, transferred an additional 5,000 ETH (valued at approximately $9.14 million) to Huobi.
#PeckShieldAlert #JustinSun labeled address on #Tron withdrew 200M $USDT from #JustLend and transferred it to #Huobi #JustinSun labeled address on #Ethereum transferred 5,000 $ETH (~$9.14M) to #Huobi pic.twitter.com/UusSEaooJA
— PeckShieldAlert (@PeckShieldAlert) August 8, 2023
Huobi itself is facing turbulent times. Following reports of critical officials’ detention by Chinese authorities, the exchange has seen an alarming $64 million outflow in a single weekend. Adam Cochran, a noted crypto analyst, flagged concerns over Huobi’s financial stability, hinting at possible insolvency.
Rumors suggest Huobi’s alleged ties with gambling websites might be at the heart of its crisis. The departure of a senior executive and speculations around potential insolvencies have spotlighted Huobi’s operations and future.
As Sun urges the public to discount whispers about Huobi’s troubles, the crypto world watches closely. With so much at stake, can the DeFi ecosystem weather the storm? Only time will unveil the answers to this high-stakes crypto puzzle.