Cryptocurrency trading platforms act as the intermediary between traders and cryptocurrency by providing different trading options.

Trading platforms are very sensitive things in the crypto market, as any negative news on the platform would sow panic in the hearts of its users, and might make them flee their cryptocurrencies towards a safer destination and platform.

This is what actually happened with the “Huobi” platform, which is one of the prominent trading platforms in the crypto arena went out Of this, roughly $300 million, or about 18,652 bitcoins, went towards Binance.

As news spread that Mr. Robin Zhou, chief of operations of Hubei, had disappeared from November 2 to November 11.

Read:A new record in the number of bitcoin users has been set since 2017

And as the popular saying goes, “The misfortunes of a people benefit others.” Binance has benefited from this news by receiving currencies issued by the “Huobi” platform.

It seems that traders and users of the “Huobi” platform were afraid of repeating the scenario of the “OKex” platform, in which withdrawals were stopped after the investigation of the founder of the platform.

It also appears that the Chinese government is in the process of investigating several Chinese executives of global trading platforms after it closed and tightened its grip by closing all trading platforms and preventing the trading of digital currencies in preparation for the launch of the digital yuan currency.

Trading platform TokenBetter is another platform that halted withdrawals in mid-October after opening an investigation into its founder as well.

Binance has not commented on the amount of money transferred from Huobi.

Many observers indicated that the shift of funds towards Binance was due to the obvious reason that the founders and CEOs of Binance as a whole are active outside of China, which made Binance as a safe destination for the conversion of cryptocurrencies towards it.

For the record, “Hubei” has not clarified the whereabouts of “Robin Zhou” until now, as the company refused to provide information.

Read:Learn about the details of the partnership between the Tron project and Simplex Fintech company

While Ciara Son, Vice President of the Global Market at the Huobi platform, commented that all operations are normal, and she was told that the information circulated is wrong, and that they reserve the right to pursue those who spread false news about the platform.

The reason and impact of this campaign on Huobi and other trading platforms:

Felix Wang, director of operations at Hedgeye, told reporters that the Chinese government is only interested in cracking down on misleading products targeting the public.

Read:How will games benefit from NFT tokens?

He said the Chinese government is a big fan of innovation and development, and does not want to disrupt digital products and what is already circulating in the financial system.

Wang noted that companies related to financial technology and blockchain may feel that this is the beginning of tough measures against them, forcing them seriously to consider leaving China.

Due to the fact that cryptocurrency traders in China may struggle to find a platform that is compliant with Chinese regulations, they get into foreign trading platforms.

CZ, the CEO of Binance, revealed that the location and address of his company is decentralized, unlike OKEx, which is currently located in Malta, and Huobi, which is now based in the Seychelles.

Read also:

Project Beam prepares to launch privacy-focused DeFi platform

Is bitcoin technically compatible with global adoption?