HTX, formerly known as Huobi, made headlines on May 27 by exceeding US-based Coinbase in daily spot trading volumes for the first time ever. The influential figure behind the TRON blockchain, Justin Sun, who is also one of the investors at HTX, shared the milestone on social media. He revealed that HTX traded $1.81 billion worth of cryptocurrencies within a 24-hour period, surpassing Coinbase’s $1.58 billion. This achievement marked a significant moment for HTX, showcasing its growing prominence in the cryptocurrency exchange market.
However, recent data from CoinGecko shows that Coinbase has now reclaimed its position at the top. In the past 24 hours, Coinbase processed a trading volume of $2.2 billion, solidifying its position as the third-largest crypto exchange globally, trailing only Bybit and OKX. On the other hand, HTX traded approximately $2.1 billion, placing it slightly behind Coinbase. This reversal of fortunes highlights the dynamic nature of the cryptocurrency market, where exchanges constantly vie for dominance and market share.
Notably, the HTX exchange underwent a rebranding in September 2023 to mark its 10-year anniversary. The decision to change its name from Huobi to HTX stirred controversy within the crypto community, drawing comparisons to the collapsed exchange FTX. The new name, comprising “H” for Huobi, “T” for Justin Sun’s TRON blockchain project, and “X” representing the exchange itself, sparked debates about the direction and reputation of the platform. Despite the rebranding efforts, HTX continues to face scrutiny and comparisons with its predecessor.
Coinbase’s brief setback in spot trading volume coincided with its ongoing legal battle in the United States. The US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, accusing the exchange of operating as an unregistered national securities exchange, broker, and clearing agency. The SEC’s allegations suggest that Coinbase failed to comply with regulatory disclosure requirements aimed at safeguarding the securities markets. This legal dispute has cast a shadow over Coinbase’s operations and reputation, leading to increased scrutiny from regulators and investors alike.
In response to the SEC’s lawsuit, Coinbase has been actively defending its business practices in court. However, a significant development occurred in March 2024 when a US court rejected Coinbase’s motion to dismiss the SEC’s case. This ruling allowed the SEC to pursue its claims that Coinbase violated securities regulations by operating without proper registration. Seeking to challenge this decision, Coinbase filed a memorandum in support of its interlocutory appeal in May 2024, aiming to alleviate some of the legal pressures facing the company. Additionally, Coinbase customers took legal action against two of the exchange’s subsidiaries for alleged violations of securities laws, adding further complexity to the legal battle.
Overall, the cryptocurrency exchange landscape remains highly competitive and volatile, with exchanges like HTX and Coinbase constantly evolving and adapting to regulatory challenges and market dynamics. As the industry continues to mature, exchanges must navigate legal hurdles, regulatory scrutiny, and changing consumer demands to maintain their relevance and trust within the crypto community.
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