Huobi’s HT Token Crashes 90%: Here’s What Happened
• On Thursday, the native token of Huobi Exchange, HT, crashed by over 90%.
• The price drop was caused by $2 million worth of HT tokens being sold on Huobi in the minutes prior.
• Tron founder Justin Sun is the largest holder of HT tokens and has reassured the Huobi community that operations are safe.
HT Token Price Drop
On Thursday, the native token of Huobi Exchange, HT dropped by over 90%, momentarily dropping from $4.6 to $0.31. Although the price has since recovered, it was trading 21% lower than before at press time.
Cause of Crash
According to transaction data from Kaiko’s research analyst Riyad Carey, more than $2 million HT tokens were sold on Huobi in the minutes leading to the crash. Justin Sun is also reported to be the largest holder of HT tokens and serves as an advisor to Huobi crypto exchange.
Justin Sun’s Response
In response to this sudden plunge in price Justin Sun said: “Few users triggering a cascade of forced liquidations in spot and HT contract markets… We will continue to improve liquidity depth of main cryptocurrencies and HT token” He further reassured the community that operations at Huobi are safe and he would create a $100 million liquidity fund for those impacted by leveraged liquidation.
Similar Trend with TRX
In this same period when HT price dropped by 90%, Tron’s token TRX also dropped 12% from 0.057$ to 0.066$.
The cause for this sudden drop in price is still unclear but it appears that it may have been due an influx or sell order on Huobi exchange which triggered a cascade of leveraged liquidations across multiple contracts and spot markets resulting in major losses for users holding onto their positions during this dip. Justin Sun has since assured investors that all operations are running smoothly and he will be creating a specific fund to help out those affected by these losses due to leveraged liquidations