• HT, Huobi’s native token, crashed by over 90% on Thursday dropping to $0.31 from $4.6 in just 10 minutes.
• Over $2 million HT tokens were sold on Huobi prior to the crash and Justin Sun was reported to have moved $60 million in USDT from Huobi to Aave.
• Justin Sun, as an advisor to the Huobi crypto exchange and largest holder of HT tokens, has created a $100 million liquidity fund for those impacted by the leveraged liquidation.
HT Price Drops Sharply
HT, the native token of Huobi Exchange, crashed by over 90% on Thursday dropping to $0.31 from $4.6 in just 10 minutes. Although the price has since recovered, it was trading at $3.81 at press time – 21% down in the past 24 hours.
What Caused the Drop?
According to transaction data from Kaiko’s research analyst Riyad Carey, more than $2 million HT tokens were sold on Huobi prior to the crash and Tron’s founder Justin Sun is its largest holder of HT tokens and serves as an advisor to Huobi crypto exchange. In this period when HT price dropped drastically by 90%, Tron’s token TRX also decreased 12% from 0.057$ to 0.066$.
Justin Sun’s Response
Commenting on the spontaneous price plunge Justin Sun said: „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.“ He also dismissed it as a normal market occurrence and reassured Huobi community that its operations are safe.
Liquidity Fund Created By Justin Sun
Justin Sun announced that he will create a $100 million liquidity fund for those impacted by this leveraged liquidation and actually confirmed via Twitter that he has transferred 100$ million USDC stablecoin into his account at Huobi exchange.
Conclusion
The drastic drop in price of HT was not expected but fortunately Justin Sun took quick action in providing help for users affected due his creation of a $100 million liquidity fund which calmed down investors’ anxiety about their funds being unsafe or lost during this incident