• 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 Justin Sun was reported to have moved $60 million in USDT from Huobi to Aave.
• Justin Sun dismissed the price drop as a normal market occurrence and assured the Huobi community that he will create a $100 million liquidity fund for those impacted by the leveraged liquidation.
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. The price has since recovered, but it was trading at 21% lower at press time compared to 24 hours earlier.
Cause of Price Drop
More than $2 million HT tokens were sold on Huobi prior to the crash and Tron’s founder Justin Sun was also reported to have moved $60 million in USDT from Huobi to Aave at around the same time. Interestingly, Justin Sun is also one of largest holders of HT tokens and serves as an advisor for the exchange.
Justin Sun’s Response
Justin Sun responded by saying that few users triggered a cascade of forced liquidations in both spot and HT contract markets which led to this event. He reassured Huobi’s community that operations are safe and would be creating a liquidity fund worth $100 million for those affected by leveraged liquidations due to this event.
Price Recovery
The price has since recovered after crashing down initially but it still remains 21% lower than it was before this incident occurred 24 hours ago at press time.
Conclusion
This sudden drop in prices caused panic among many investors who held HT tokens but Justin Sun managed to bring back some confidence with his assurance regarding operations being safe and creation of liquidity fund for those affected due leveraged liquidations because of this event