Huobi recently witnessed a massive token collapse during a flash crash. The 17th biggest exchange experienced a 90% loss in market cap, which was recovered minutes later.
At 3:45, HT was trading at $4.70. The token was now worth $1.83 after 25 minutes had passed. A couple of hours later, the currency returned to 3.90 dollars, a 30% dip from the previous day.
The sudden fiasco intrigued the entire crypto circuit. As soon as the news reached enthusiasts, they started looking for an in-depth Huobi exchange review. These reviews talked about HT (Huobi Token), the native crypto of the Huobi Global exchange.
Based on Ethereum, the token was launched back in 2023. HT is primarily used to buy VIP-status plans, earn crypto rewards, vote on decisions, and reduce trading commissions.
Returning to the slump, reports stated that HT suffered a significant market cap loss of $200,000,000. This decline was only momentary, as the token made a 1000% recovery a few minutes later. As anticipated, the abrupt crash triggered a wide range of theories.
A Kaiko researcher proposed the hypothesis that a $2 million transaction was announced just before the crash. The purchase price was significantly higher than the typical 600k USD buys on the Huobi-USDT pair.
Contrarily, several enthusiasts speculated that the development was triggered by broader market sentiment.
Given the status Huobi holds in the market with a 630 million-dollar market cap, the news shook the industry. Another reason the movement was closely followed is Justin Sun’s massive involvement with Huobi.
Despite the recent turn of events, Huobi is aiming to get the VASP (Virtual Asset Service Provider) license in Hong Kong. If the exchange meets its target, it will certainly help the token maintain credibility.