• HT, Huobi’s native token, experienced a 90% drop in price on Thursday.
• Over $2 million worth of HT tokens were sold prior to the crash.
• Justin Sun is the largest holder of HT tokens and has created a $100 million liquidity fund for those affected by the leveraged liquidation.
HT Price Crash
HT, the native token of Huobi Exchange, crashed by over 90% on Thursday dropping from $4.6 to $0.31 in just 10 minutes. Although the price has since recovered, it was trading at $3.81 21% down from its original value 24 hours later.
Cause of Crash
Transaction data from Kaiko’s research analyst Riyad Carey revealed that more than $2 million HT tokens were sold on Huobi prior to the crash. The largest holder of HT being Tron’s founder Justin Sun who was also reported to have moved $60 million in USDT from Huobi to Aave during this time period as well.
Justin Sun’s Response
Justin Sun commented that few users triggered a cascade of forced liquidations in both spot and HT contract markets which caused this momentary drop in price and he assured the community that Huobi operations are safe and secure. He also announced that he will be creating a liquidity fund worth $100 million USDC stablecoin for those impacted by these leveraged liquidations.
TRX Price Drop
Coincidentally, when HT dropped by 90%, Tron’s token TRX dropped 12% from its original value 0f$0.057 going down to 0$.066 within minutes as well leading many people to speculate if there is any correlation between these two events or not however nothing has been confirmed yet about this matter until now.
Although the cause behind this sudden drop remains unknown it can be assumed that due to some large transactions taking place during this time period one or more traders were forced into liquidations causing a domino effect which eventually led to an abrupt decrease in price of not only HT but TRX as well but both prices have since recovered back up again till then nothing can be said with certainty about what caused this incident until further investigations take place regarding this matter