• On Thursday, the native token of Huobi Exchange, HT, crashed by over 90% dropping to $0.31 from $4.6 in a matter of minutes.
• It is reported that more than $2 million HT tokens were sold on Huobi prior to the crash and Tron’s founder Justin Sun is the largest holder of HT tokens.
• Justin Sun dismissed the price drop as a normal market occurrence and assured the Huobi community that Huobi operations are safe, even creating a $100 million liquidity fund for those impacted by the leveraged liquidation.
HT Price Drop Causes Alarm
On Thursday, HT, the native token of Huobi Exchange, crashed by over 90% dropping to $0.31 from its initial price of $4.6 in just 10 minutes causing alarm among investors and traders alike.
Transaction Data Revealed
According to transaction data from Kaiko’s research analyst Riyad Carey, more than $2 million HT tokens were sold on Huobi prior to this drastic price change in an effort to offset losses caused by leveraged liquidations. Additionally, it has been reported that Tron’s founder Justin Sun is the largest holder of HT tokens and serves as an advisor for the crypto exchange in question.
Justin Sun Assures Community
In response to this price plunge Justin Sun offered reassurance via Twitter saying “We will continue to improve the liquidity depth of main cryptocurrencies and HT token…” He also said he will create a $100 million liquidity fund for those affected by forced liquidations which he followed through with transferring USDC stablecoin into Huobi’s wallets..
TRX Price Drop
Interestingly enough during this time when HT was experiencing its sudden decrease TRX (Tron’s native token) saw a 12% drop in its own value falling from 0.057 USDT down to 0.066 USDT within 24 hours at press time..
Conclusion
As it stands now after having recovered somewhat from its initial loss one can only assume what other effects this might have had or will have on not only these two coins but also other cryptocurrencies included in similar trades on other exchanges around the world as well..