Huobi Token Price Crashes 90%: Justin Sun and $100M Fund to the Rescue
• HT, Huobi’s native token, experienced a 90% price drop on Thursday dropping from $4.6 to $0.31.
• Justin Sun is the largest holder of HT tokens and serves as an advisor to the Huobi crypto exchange.
• Justin Sun has created a $100 million liquidity fund for those impacted by the leveraged liquidation.
HT Price Crash
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 Price Drop
More than $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. Tron’s founder Justin Sun is also the largest holder of HT tokens and serves as an advisor to the Huobi crypto exchange and during this same period Tron’s token (TRX) dropped by 12%.
Justin Sun Comments
Justin Sun commented that few users triggered a cascade of forced liquidations in the spot and HT contract markets leading to a sudden drop in prices but assured users that operations are safe and he would create a liquidity fund for those affected by leveraged liquidation. He later confirmed via Twitter that he had transferred $100 million in USDC stablecoin to Huobi for this purpose.
Kaiko Research Data
Transaction data from Kaiko research analyst Riyad Carey showed that more than 2 million HT tokens were sold on Huobi prior to the crash which contributed significantly towards its massive price drop within 10 minutes time frame..
Despite facing such a huge loss due to sudden price drops, Justin sun was quick enought o react with solutions which helped restore some trust amongst investors who were otherwise panicking after such an abrupt fall in prices overall helping them recover their losses partially however not completely as compared with what they had before this event took place