• HT, the native token of Huobi Exchange, crashed by over 90% on Thursday dropping to $0.31 from $4.6 in just 10 minutes.
• More than $2 million HT tokens were sold on Huobi prior to the crash and 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 operations are safe with a $100 million liquidity fund for those impacted by the leveraged liquidation.
HT, the native token of Huobi Exchange, experienced an unexpected price crash on Thursday dropping to $0.31 from $4.6 in just 10 minutes before recovering somewhat back to around $3.81 at press time.
Cause of Price Drop
Transaction data from Kaiko’s research analyst revealed that more than $2 million HT tokens were sold on Huobi prior to this sudden crash while Tron founder Justin Sun was reported to have moved 60 million USDT away from Huobi into Aave exchange. As he is also reported to be the largest holder of HT tokens and serves as an advisor to Huobi crypto exchange, speculation arose that his actions had something to do with it.
Justin Sun’s Response
Justin Sun responded via Twitter saying that few users triggered a cascade of forced liquidations in spot and HT contract markets and promised that they will continue improving liquidity depth for main cryptocurrencies and its token, strengthen leverage risk warnings & liquidity capabilities. He then dismissed this incident as a normal market occurrence, assuring everyone that operations at Huobi are safe, even going so far as creating a 100$ million liquidity fund for those impacted by leveraged liquidations caused by this event.
The cause behind this sudden drop in HT prices still remains unclear but Justin Sun’s response seems genuine enough for many investors who may now feel more secure about investing in digital assets through exchanges like Huobi again given his promise of increased safety measures & assurance funds after such events occur again in future if necessary..
•More than $2 million worth of HT tokens were sold on Huobi prior to price crash
•Tron founder Justin Sun is the largest holder of HT tokens & serves as an advisor to Huobi crypto exchange •Justin Sun promised improved liquidity depth & leverage risk warnings among other safety measures after this incident