HT – the native token of Huobi Exchange – crashed by 90% on Thursday, dropping from $4.6 to $0.31 in a span of 10 minutes. The price has since recovered, but HT was still down by nearly 20% over the past day and was currently trading at $3.81.
Other crypto-assets tied to Tron’s founder, Justin Sun, also tumbled. TRX, for one, fell by over 12% in the past 24 hours from $0.066 to $0.057.
- Despite this, the exec assured that Huobi’s operations are safe and dismissed the incident as normal market behavior.
- Sun, who happens to be the biggest holder of the HT token, apologized for the market fluctuation caused by a “few users triggering a cascade of forced liquidations in the spot and HT contract markets.”
- The exec intends to set up a liquidity fund with an investment of $100 million for those impacted by the leveraged liquidation on the market. He also confirmed a transfer of $100 million in USDC stablecoin to Huobi.
“We will continue to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities.”
- In an update, Sun also revealed that Huobi is tasked with bearing all leverage-through position losses on the crypto exchange that transpired from this market volatility event of HT.
- Strengthening leverage risk warnings and liquidity capabilities are some of the areas that require attention, according to the exec, who also serves as an advisor to the crypto exchange.
- In the minutes leading up to the crash, more than $2 million of HT tokens were sold on Huobi, according to the transaction data provided by Kaiko’s research analyst, Riyad Carey.
- Besides, Sun was reported to have moved $60 million in USDT from Huobi to Aave, which Nansen said could be unrelated to the event.
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