- Huobi was the place where $2 million in HT tokens were purchased before the crash.
- Momentarily, HT prices dropped from $4.6 to $0.31
- Tron’s founder Justin Sun is the largest holder of HT tokens.
Huobi Exchange’s native token HT crashed by over 90%, dropping to $0.31 in 10 minutes from $4.6.
Although the price has since recovered, the token was trading at $3.81, 21% down in the past 24 hours at press time.
Why did the HT price briefly drop?
According to transaction data from Kaiko’s research analyst, Riyad Carey, more than $2 million HT tokens were sold on Huobi in the minutes leading to the HT crash. Justin Sun was also reported as having moved $60 million USDT between Huobi and Aave.
Interestingly, Tron’s founder Justin Sun is the largest holder of HT tokens and serves as an advisor to the Huobi crypto exchange.
In the same period when HT price dropped by 90%, Tron’s token, TRX price dropped by 12% from $0.057 to $0.066.
Justin Sun commented on the spontaneous price plunge:
“Few users triggering a cascade of forced liquidations in the spot and HT contract markets… We will continue to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities.”
Sun said that the price drop was a normal market phenomenon and assured Huobi residents that Huobi operations will be safe. Sun also stated that he would create a $100million liquidity fund to assist those who were affected by the leveraged liquidation. He actually did. confirmed via Twitter He has sent Huobi $100 million USDC stablecoin.
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