Summary
• HT, Huobi’s native token, experienced a 90% price drop on Thursday.
• $2 million worth of HT tokens were sold on Huobi prior to the crash.
• Justin Sun is the largest holder of HT tokens and serves as an advisor to the Huobi crypto exchange.
HT Price Crash: Overview
HT, the native token of Huobi Exchange, crashed by over 90% on Thursday dropping from $4.6 to $0.31 in just 10 minutes before recovering slightly. 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 up to the crash. Justin Sun, founder of Tron and largest holder of HT tokens, also moved $60 million in USDT from Huobi to Aave during this period. The price plunge triggered a series of forced liquidations in both spot and HT contract markets.
Justin Sun Responds
Justin Sun commented on the incident stating that few users had caused a cascade of liquidations and assuring the community that operations at Huobi are safe. He further announced plans for creating a liquidity fund worth $100 million for those impacted by leveraged liquidation as well as improving liquidity depth for major cryptocurrencies and HT token along with strengthening leverage risk warnings and liquidity capabilities.
Implications For Investors
The sudden price plunge has left investors questioning their security when trading at exchanges like Huobi which rely heavily on their native token’s performance for user experience improvement initiatives such as staking rewards programs or discounted trading fees amongst other services offered through their platform.
Conclusion
Although it is unclear what triggered this particular event, it serves as an important reminder for investors to be aware of market movements especially when dealing with volatile assets such as cryptocurrencies or derivatives products like futures contracts which are highly leveraged with large amounts of capital invested into them at any given time. With increasing regulations coming into play surrounding digital assets, it will be interesting to see how exchanges respond in order to protect their customers from future losses due to unexpected market events like this one while still remaining competitive within an increasingly crowded space.