• 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 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.
HT Price Drop
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, 21% down in the past 24 hours at press time.
Cause of Crash
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. In addition, Tron’s token (TRX) dropped 12% from $0.057 to $0.066 during this same period whileJustin Sun moved around $60 million USDT from Huobi to Aave at this time as well..
Justin Sun’s Response
Justin Sun responded that few users had triggered a cascade of forced liquidations in both spot and HT contract markets which had caused this dip in price for both tokens mentioned above . He also stated that he will create a liquidity fund for those impacted by leveraged liquidation with a total amount of 100 million USDC stablecoin transferred intoHuobitoprovide additional liquidity supportforHTtoken holders and traders alike . Moreover ,he reassuredtheHuobicommunitythatHuobiop erationsare safeand theywillcontinueto improvetheliquiditydepthofmaincryptocurrenciesandHTtokenas well asstrengthenleverage risk warningsandliquiditycapabilities .
The impactoftheHTpricecrashonthetokens weremixedasthepriceofHThasrecoveredsincethedropbutstillremains21percentdowninthepast24hoursatpresstime . Ontheotherhand ,TRXdropped12percentfrom$0 . 057to$00 . 66duringthissametimeperiod .