Huobi’s HT Token Suddenly Falls 90%, Justin Sun Takes Emergency Measures
Huobi Token (HT) is the native cryptocurrency of the 17th biggest cryptocurrency exchange, Huobi Global. It was launched in January 2018 and is built on the Ethereum blockchain. The token is used to cut trading fees, acquire VIP status plans, vote on exchange decisions, and collect cryptocurrency incentives.
According to a TradingView value source, the coin plummeted from a 24-hour high of $4.8 to a low of $0.3 at 21:00 UTC on Huobi’s market.
The token then immediately rebounded to about $3.9. Similar price decreases were seen on other exchanges.
A crypto Twitter user saw a drop in the price of HT tokens due to the selling of $2 million worth of HT tokens in 5 minutes. The purchase amount on the HT-USDT pair, on the other hand, is just approximately $600,000.
In the 5 minutes leading up to the $HT crash there was $2mn worth of sales compared to just $600k of buys on the main HT-USDT pair on Huobi pic.twitter.com/Z6sbgugSit
— Riyad Carey (@riyad_carey) March 9, 2023
Almost $200,000,000 of HT’s market value was lost in one hour, only to be recovered by more than 1000% minutes later.
At the time of writing, HT had recovered and was trading at $3.5 on Poloniex. It has dropped by around 30% in the previous 24 hours.
HT/USDT price Chart by TradingView
On Twitter, Justin Sun said that the Huobi exchange is safe to use and that recent market changes were caused by a few individuals initiating a chain reaction of forced liquidations in the spot and HT contract markets.
Sun is also transferring $100 million in USDC from one of his wallets after promising to set up a $100 million liquidity fund for Huobi in reaction to the HT token’s severe decline and subsequent return.
We have transferred 100 million #USDC to @HuobiGlobal. Done. https://t.co/0TbCsH2ixn https://t.co/XWeHI3FriZ
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
Apart from the huge disposal and a larger bout of risk aversion that impacted a variety of assets, market observers disagreed on the exact reasons for the HT drop.
Others speculated that Huobi and Poloniex, another cryptocurrency exchange, may have combined, causing confusion. Sun disputed that the two transactions had been integrated. The platforms launched a strategic collaboration alliance in November.
A regulatory crackdown in the United States may have also alarmed investors. In a lawsuit against KuCoin, one of the major cryptocurrency exchanges, New York Attorney General Letitia James took another shot at the digital-asset sector.
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