In testing the relatively new exchange, we found a design feature with troubling implications. Namely, each digital asset has a “deposit minimum,” which requires users to deposit a certain number of coins or the deposit won’t arrive in your account. Making matters worse, the minimum is hidden for 7 of the exchange’s 22 cryptocurrencies — oddly, each of these require deposits in excess of $20.
Huobi has hidden the deposit minimums for these cryptocurrencies in an expanding tab in the “Tips” section with a rather small link required to view the information. Thus, if you’re unlucky enough to select one of these digital assets for your first deposit, there’s very little chance you’ll notice the required minimum.
If you actually try to deposit less than the required minimum to one of your personal deposit addresses, the transaction will arrive at the address, but the cryptocurrency won’t show up in your account. We sent a test deposit of 3,575.95 DOGE to our address, which was quickly sent on to an unknown Dogecoin address that has received 89,630,229 DOGE ($228K) in the past, never to be seen again.
Huobi’s deposit minimum will likely seem strange to those familiar with crypto exchanges as fees are paid when you send the transaction, not by Huobi when it arrives. As our test deposit shows, it actually requires a further transaction, made without the user’s permission, to empty out the account and keep it from having a balance.
Notably, Huobi Global instituted a similar minimum requirement for deposits during the 2017 bull run, however, it only affected “depositing speed[…] to some extent,” according to the announcement.
Image: Hektor Ehring Jeppesen / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.