Crypto Bounces After Chinese Ban, Uniswap Rises, Huobi Crumbles

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Last Updated on 1 October 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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The crackdown of China on crypto overall has had two interesting results, which are in fact a proof point for the strength of cryptocurrencies. Firstly, by now we can state that in the past few months whenever there was hit to crypto it looks in retrospect as if there was a buying opportunity.

Secondly, the beneficiaries of the Chinese announcement were decentralized exchanges like SushiSwap and Uniswap (up 18% over the past week). Whereas an exchange like Binance for example is centralized, and thus a platform that can be tracked, it’s those platforms in China that are being shut down and are seeing losses.

Decentralized exchanges on the other hand see rises.

Advertentie.

Huobi Crumbles

One of the biggest examples of coins getting hit for example, is the local Chinese Huobi Token.

Earlier this week, Cryptotips predicted that the Chinese ban might actually turn out to be good news for Bitcoin as trading would shift again. By now, digital-asset management firm Grayscale believes in fact that DeFi coins and US crypto exchanges will indeed benefit from China’s crypto crackdown as trading volume moves to the United States.

For Chinese based coins, like Huobi Token however, the week has been less stellar.

Mainland Chinese users of the Huobi exchange were directly impacted by the restrictions recently released by the People’s Bank of China. The bank had displayed its desire to intensify the war against Bitcoin and cryptocurrencies in general.

31 December 2021

On September 26, Huobi Global announced in a statement the cessation of new account registrations for users in mainland China.

It said:

Huobi Global will gradually retire existing China user accounts by 24:00 (UTC+8) on Dec 31, 2021, and ensure the safety of users’ assets. We will inform users of the specific arrangements and details through official announcements, emails, text messages, etc.

The exchange thus further indicated that it would gradually close user accounts in mainland China by 31 December 2021. The platform justified these targeted measures, citing the desire to comply with local laws and regulations.

As a result, Huobi Token, ranked 73th on CoinMarketCap, lost some 35% of its value in a week. It is at this point unclear where the investments taken out of Huobi have ended up, but we believe it’s once again a story of out of China, into the USA.

Mermolenko / Depositphotos.com