• HT, the native token of Huobi Exchange, experienced a 90% price crash on Thursday.
• The cause of the crash was attributed to more than $2 million HT tokens being sold on Huobi prior to the crash and Justin Sun’s transfer of $60 million in USDT from Huobi to Aave.
• Justin Sun, who is the largest holder of HT tokens and serves as an advisor to Huobi Exchange, assured users that operations were safe and created a $100 million liquidity fund for those impacted by leveraged liquidations.
HT Price Plunge
HT, the native token of cryptocurrency exchange Huobi experienced a dramatic price plunge on Thursday when its price dropped over 90%, temporarily falling from $4.6 to $0.31. Although the price has since recovered somewhat, at press time it was still down by 21%.
Cause Of Crash
Transaction data from Kaiko’s research analyst Riyad Carey revealed that more than $2 million worth of HT tokens were sold on the exchange before it crashed. Furthermore, Tron’s founder Justin Sun -who is also an advisor to Huobi Exchange- moved substantial amounts of USDT (stablecoin) from the exchange leading many to speculate that this caused or contributed heavily towards the crash.
Justin Sun Reassures Community
Justin Sun took to Twitter in order to assure users that operations at Huobi were safe and secure. He dismissed any speculation linking him or his actions with causing the crash stating that it was simply due “a cascade of forced liquidations” in both spot and contract markets which triggered it instead. In addition he announced plans for creating a $100 million liquidity fund for those affected by leveraged liquidations as well as improving liquidity depth in main cryptocurrencies and HT token itself.
Impact On TRX
Interestingly enough during this same period when HT crashed TRON’s own native token (TRX) also decreased significantly dropping 12% from $0.057 to 066 – showing how interconnected these two projects are even though they’re not directly linked together themselves necessarily.
The brief but drastic dip in HT prices has been largely attributed to large scale sales taking place prior as well as heavy movements of funds between various exchanges connected with Justin Sun himself – although no direct causal relationship can be proven one way or another at present time . However despite all this uncertainty Justin Sun has reassured users through his actions that operations at Huobi Exchange remain secure and stable while also committing significant amounts towards helping those impacted by leveraged liquidations financially too