According to Odaily Planet Daily, Justin Sun responded to the user's questioning of the high-interest wealth management product offered by WLFI deposits, stating: "Some people online have questioned Huobi's high-interest wealth management products. I would like to clarify a few points:
1. Similar to the current trend of instant retail (free meals), high-interest wealth management products derive 100% of their interest from group subsidies. Essentially, this is a competition between trading platforms for users. Everyone can deposit and spend freely, and the subsidy logic is simple: more users, more transactions, and long-term profitability.
Huobi is still in its early stages of growth. Our strategy is to encourage everyone to deposit freely and without any upper limit. We can discuss other matters once the funds have accumulated.
3. Merkle tree proofs have been around for almost 34 months now, so I doubt anyone will still say that the funds are not transparent.
4. Now that the group earns billions of dollars a year, no one will question whether we can afford the subsidies.
