Crypto Billionaire Justin Sun's Huobi-Linked Exchange WhiteBIT Raises Concerns Over Its Lending Platform
An obscure exchange with connections to Justin Sun, WhiteBIT, has sparked concerns after advertising a staggering Annual Percentage Yield (APY) of 24.8% to users depositing Tether (USDT) for a year on its lending platform, Protos reported.
This rate is five times higher than the average USD money market rate, a glaring red flag for potential investors.
WhiteBIT's association with Justin Sun, a well-known figure in the cryptocurrency industry, raises further suspicion.
The exchange has established connections to Sun and his Huobi exchange, with funds flowing frequently between WhiteBIT and Huobi. This affiliation might explain the high APY figure, yet it offers little reassurance to those considering investment.
Justin Sun has a history of promoting exorbitant returns on dubious stablecoins. He has touted returns ranging from 150% to 392% on his USDD stablecoin, 2,366% on USDJ, 30% on USDC, and 23% on TUSD.
This history of extravagant promises combined with WhiteBIT's connection to Sun underscores the need for cautious evaluation.
WhiteBIT offers a range of over 150 cryptocurrency trading pairs and supports two lesser-known fiat currencies, the Ukrainian hryvnia and Kazakhstani tenge.
However, the most eye-catching feature is its 'lending' platform, which boasts interest rates exceeding 24.8%.
While higher interest rates generally indicate elevated risks, WhiteBIT has recently reported holding $1.59 billion in digital assets, with its own ICO token, WhiteBIT Coin (WBT), accounting for a significant portion.
Despite these figures, it seems implausible that users would choose to hold 99% of their assets in WBT, raising questions about the token's legitimacy and its impact on the exchange's overall credibility.
WhiteBIT's access
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