Cryptocurrency

Justin Sun admits Huobi ownership, calls Binance a partner rather than rival

TRON founder Justin Sun has confirmed the acquisition of Huobi, saying that Binance is an important partner, not a competitor.

Does Sun own Huobi?

In July 2022, it was reported that Huobi founder Leon Li was seeking a buyer for more than 50% of the company. The move was motivated by market weakness and an increasingly challenging regulatory landscape.

By November 2022, Mr. Li had sold his controlling stake to an “acquisition company” and brokered the transaction. About Capital Management HK. Rumors circulated that Sun was behind the acquisition, with a $1 billion investment to acquire his 60% stake in Huobi Global.

Sun denied these rumours, saying his role in the company was that of an advisor and not a major shareholder. Nonetheless, he has since gone on to represent Huobi in high-level positions, including announcing a potential merger between Huobi and Poloniex in November 2022.

by the end of the month Huobi announced that it has established a strategic partnership with Poloniex to collaborate on multiple business operations.

March, chain catcher A merger of the two companies will take place and Poloniex will be integrated into Huobi’s business, said Poloniex’s website It keeps working.

Just recently, Sun interviewed the Empire YouTube channel to discuss several issues, including TRON’s vision, yield farming, and Huobi’s competition with market leader Binance.

Huobi has plenty of room

Instead of assembling a situation where Huobi goes up against Binance, Sun He said there was room for many exchanges to operate normally.

He explained that he believes the cryptocurrency exchange market will diversify in the long run, although Binance has 50-60% of the market.

His reasoning boils down to the volatility of trending tokens such as Pepe, which has gained significant market cap in a short period of time.

Sun said this differs from traditional stock markets, where major stocks stay exclusively on the same exchange, citing Apple trading on the Nasdaq as an example.

Additionally, as the popularity of various crypto tokens declines, there is room for cryptocurrency exchanges to ride on these trends.

“Ultimately, I believe this industry will become a multitude of exchanges listing various assets. Binance will probably list mainstream assets such as Bitcoin and Ethereum. Other exchanges will be better at listing innovative assets.”

Sun added that Huobi sees Binance as “one of its most important partners” rather than a competitor, as it has worked extensively with them.

When setting the scene for questions about competing with Binance, the host said: Jason Yanowitz Sun said it acquired Huobi in October 2022. He said yes, confirming that he is a significant shareholder.

Related Articles

Back to top button