Crypto Exchange Hoo Beset by Cash Flow Gap
Due to rapidly changing market conditions, many external investment institutions, chains, lending projects and platforms have successively encountered problems, crypto exchange Hoo has suffered a gap in its cash flow, according to its statement on July 24.
In order to quickly solve the problem of cash withdrawal, ensure that user assets are not lost to the greatest extent, and resume platform operations, Hoo will launch a debt-to-token conversion plan and a partner investment plan, and it will optimize financial derivatives futures tradings.
The debt-to-token conversion plan involves transferring some existing assets of users on the platform, allowing users to freely trade in the Innovation zone and directly exchange at equivalent market prices.
Hoo will officially launch the debt-to-token conversion plan on August 1, 2022. When the plan is in progress, all user tradings will be closed. It is planned to open the Innovation zone on August 5, and the user’s debt token can be freely traded.
Hoo originated in mainland China, but its official social media shows that it is now based in the Cayman Islands. Hoo was founded by Rexy Wang in 2018. Rexy Wang was previously a data engineer at a state-owned enterprise, then quit his job in 2013 to devote himself to Bitcoin. In June, 2018, the company acquired the Chaince and OAX Exchange and merged it with Hoo Wallet, a multi-cryptocurrency hardware wallet, making itself one of the one-stop crypto exchanges.
In 2021, Wang disclosed that at that time, the registered users of Hoo were nearly 1.2 million, and the daily active users exceeded 50,000. Overseas users accounted for 60 to 70 percent of the total users, covering Turkey, Russia, Vietnam, Brazil, Germany and other countries.
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However, in a post in June, Hoo cited market volatility and liquidations by large institutions in the crypto industry as creating panic among users and leading to a large number of withdrawal requests. In order to process a large number of user withdrawal assets, the withdrawal audit time was delayed for 24 to 72 hours at that time.
Moreover, Hoo’s senior executives have recently been in dispute. On July 15, Rexy Wang said on social media that Fang Wenbin (Top Fang), the former head of security of Binance, took advantage of his position in Hoo to delete the company’s office system leading to domain access failure, as well as steal the company’s information and assets.
In response, Fang said that Wang had already transferred most of his assets from the platform, and had not paid employees’ salaries. The platform’s domain name has nothing to do with the office system, and he has recorded all chat history in the system, Fang added.