In a surprising turn of events on May 27, HTX (formerly known as Huobi) managed to outperform the US-based exchange Coinbase in daily spot trading volumes for the very first time. Justin Sun, a prominent figure in the TRON blockchain community and an investor in HTX, proudly announced on Twitter that HTX had traded $1.81 billion worth of cryptocurrencies within a 24-hour period, surpassing Coinbase’s $1.58 billion. This milestone marked a significant achievement for HTX, signaling potential growth and competitiveness in the crypto market.
Coinbase Regains Top Spot
Despite this initial victory, recent data from CoinGecko revealed that Coinbase quickly reclaimed its position at the top. With a trading volume of $2.2 billion in the past 24 hours, Coinbase solidified its position as the third-largest cryptocurrency exchange globally, trailing only Bybit and OKX. HTX, on the other hand, trailed behind with a trading volume of around $2.1 billion. This shift in ranking highlights the fierce competition and volatility within the crypto industry.
Coinbase’s temporary setback in trading volume coincided with ongoing legal battles in the United States. The US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging that the exchange had operated its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency. The lawsuit claimed that Coinbase had failed to comply with regulatory disclosure requirements, raising concerns about the legitimacy of its operations.
The legal saga took a critical turn in March 2024 when a US court denied Coinbase’s motion to dismiss the SEC’s case. This ruling allowed the SEC to pursue its allegations against Coinbase, creating further legal uncertainty for the exchange. In response, Coinbase filed a memorandum in support of an interlocutory appeal in May 2024, aiming to challenge the court’s decision and alleviate some of the legal pressure it faced. These legal challenges have added complexity to Coinbase’s operations and raised questions about its compliance with securities laws.
Customer Lawsuits Against Coinbase
In addition to regulatory scrutiny, Coinbase also faced legal action from its own customers. In a separate lawsuit, Coinbase customers accused two of the company’s subsidiaries of repeatedly violating securities laws since the inception of Coinbase. This legal dispute further compounded Coinbase’s legal woes, highlighting the growing number of challenges facing the exchange.
Overall, the contrasting experiences of HTX and Coinbase underscore the intense competition and regulatory challenges in the crypto industry. While HTX briefly surpassed Coinbase in trading volumes, the latter’s legal battles and customer lawsuits have raised doubts about its long-term stability and compliance with securities laws. As both exchanges navigate these challenges, the future of the crypto market remains uncertain, with key players facing legal, regulatory, and competitive hurdles along the way.