"Maybe there is a reason Mishabora said that, so everyone be careful."
Mishabora, the leading developer and biggest memecoin advocate Dogecoin (DOGE) is appealing for investors to withdraw all holdings of his digital asset from cryptocurrency exchange Huobi.
The action was taken after concerns about Huobi's settlement capabilities arose, raising questions about the effectiveness of widely accepted concepts such as Proof of Reserves (PoR) which is an indicator of the financial health of an exchange.
It's well known that crypto exchanges rely on PoR to prove their financial soundness and reassure their investors, but Mishabora said it not only confuses various parties but also doesn't give an accurate picture of the exchange's liability.
So here it can be seen how important the crypto market should improve mechanisms to ensure security including the reliability of the crypto exchange is guaranteed and not think PoR is the only criterion to evaluate financial health.
It is well known that Huobi's insolvency concerns were raised by Fintech executive and well-known investor Adam Cochran who stated the discrepancy between Huobi's on-chain data and the figures revealed in the "Merkle Tree Audit" for Tether (USDT) stablecoin holdings.
Cochran also pointed out that on-chain data shows Huobi only has $90 million in assets, which is in stark contrast to the exchange's audited claim of holding $630 million in USDT.
However, it should also be noted that Huobi was found to be selling USDT on a large scale right after the launch of stUSDT, a new stablecoin introduced by Tron founder Justin Sun, but he seems to deny the rumor as hard as possible.
