Seychelles-based cryptocurrency exchange Huobi has refuted recent reports that it would merge with its United States rival Poloniex.

Huobi Will Not Merge With Poloniex for Now

Huobi denied the rumours in an emailed statement to crypto media CoinDesk, noting that the reports about the possible messages are “categorically untrue.”

Recall that reports emerged on Friday that Huobi and Poloniex may merge due to the connection of Tron network’s founder and former CEO Justin Sun to both exchanges.

The news was first reported by the popular crypto and blockchain journalist Colin Wu of @WuBlockchain, who cited people familiar with the matter.

According to reports, the Sun holds majority stakes in both companies and Poloniex’s daily spot trading volume is small compared to Huobi. This gave more credibility to the story considering the current condition of the crypto market amid the ongoing FTX saga.

However, Huobi has confirmed the rumours as false while noting that both firms will continue to operate independently.

“We would like to state for the record that rumors stating Huobi will soon merge with Poloniex are categorically untrue. Huobi and Poloniex are operating independently now,” the exchange wrote in the statement.

A Common Pattern

Meanwhile, despite Huobi’s denial, it is too early to dismiss the possibility of a merger between the two exchanges, considering that Justin Sun is quite famous for denying rumours that later turned out to be true.

In 2019, the Tron founder denied acquiring a majority stake in Poloniex before confirming he was an investor in the exchange.

Similarly, Sun denied acquiring a stake in Huobi a couple of months ago until it became evident that he was involved in making crucial decisions for the company.

~ By William A. Frederick ~