According to Protos, WhiteBIT, a cryptocurrency exchange connected to crypto tycoon Justin Sun, has caught people’s attention with its incredible 24.8% Annual Percentage Yield (APY) for Tether (USDT) deposits on its lending platform for a year. This APY should raise investor suspicion because it is much higher than typical USD money market rates.
These worries are made worse by WhiteBIT’s connection to Justin Sun, a leading figure in the cryptocurrency business. Frequent fund transactions between WhiteBIT and Huobi have further underlined the exchange’s connections to Sun and his Huobi platform. It’s also important to consider Sun’s prior promotions of substantial returns on several stablecoins.
WhiteBIT provides a wide selection of more than 150 cryptocurrency trading pairs, including support for less popular fiat currencies such the Kazakhstani tenge and Ukrainian hryvnia. However, its loan platform, which offers a staggering 24.8% interest, continues to be its most notable aspect. The dominance of its ICO token, WhiteBIT Coin (WBT), in this amount, despite its claim to own $1.59 billion in digital assets, is debatable.
WhiteBIT has a number of advantages, including the unique ability to enable fiat transactions in Kazakhstan and Ukraine.
WhiteBIT’s track record in banking and regulation, though, is worrying. There have been noticeable withdrawal delays and accessibility concerns with its European licenses starting in 2019, raising the possibility of operating hiccups.
WhiteBIT’s co-founders don’t appear to have a strong background in crypto leadership, which raises more questions. It raises questions the scant information on CEO Vladimir Nosov’s LinkedIn profile and David Tunian’s former experience, which seems more sales-focused.
While WhiteBIT’s involvement in activities like Eurovision 2022 and support for Ukraine’s military efforts may appear good, it is important for prospective investors to exercise care due to the platform’s history, high APY offers, and connections to individuals like Justin Sun.