In Q1 2023, Crypto Exchanges Incinerate 6 Million Native Tokens

Three major crypto exchanges, Huobi, Binance, and MEXC, have burned a total of $678 million worth of native exchange tokens. Huobi burned around $3.3 million worth of HT tokens, which made up about 20% of its Q1 revenues for 2023, while MEXC burned $4 million worth of MX tokens. Both exchanges contribute to deflating their native tokens by sending them to inaccessible wallets. Meanwhile, the U.S. Securities and Exchange Commission has charged Huobi advisor Justin Sun with offering unregistered securities for TRX and BitTorrent, manipulating the secondary market of TRX, and paying celebrities to promote coins without revealing their compensation. The court will issue a summary judgment if Sun doesn’t respond to the SEC in 14 days. Blockchain firm CryptoQuant warned of potential liquidity risks at Huobi due to the concentration of HT tokens comprising roughly a quarter of the exchange’s asset reserves.