Interesting price action was seen on Huobi Token over the past 24 hours in which the digital currency, native to the global Huobi exchange, experienced a flash crash, with its price falling by as much as 93%. In what is considered a very rare event, the digital currency rallied at almost the same rate in a short time.
The Huobi token (HT) was trading as low as $0.31 at 21:00 UTC on Huobi, a figure that was also Recorded as their lowest score in over a year. The coin is now changing hands at a spot price of $4.31 on top of a 15.84% price drop.
It is not uncommon for digital currencies to lose their valuation by more than 50%, however, the last time such a situation occurred, the Terra (LUNA) token has not been able to obtain the same recovery since May of last year to date. Many analysts are still trying to understand what happened to the HT token and what exactly triggered the massive flash crash.
When these massive flash crashes occur, technically, selloffs are likely. According According to data from Coinglass, Huobi has recorded a total selloff worth more than $51 million in the past 24 hours, a trend that is seen as both a consequence of the HT flash crash and a bearish slide in the industry.
In a bid to help improve the situation, Justin Sun, the founder of the Huobi-affiliated Tron Blockchain, has promised to inject $100 million to help improve the exchange’s liquidity pool.
“We deeply apologize for the impact of the leveraged sell-off on the market caused by some users, and to further enhance the multi-currency liquidity of the @HuobiGlobal platform, we will establish a liquidity fund with an investment of US$100 million,” he said in a statement. a tweet, adding that the trading platform will “continue to improve liquidity depth of major cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities. Regarding this incident, we will keep the community updated on the progress of the follow-up.”
We deeply apologize for the impact of the leveraged sell-off on the market caused by some users, and to further enhance the multi-currency liquidity of the @HuobiGlobal platform, we will establish a liquidity fund with an investment of 100 million US dollars.
— HE Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
Huobi Crash and the effect of the sun
While some industry watchers and stakeholders have been showering praise on Justin Sun for his response and effort to push the exchange forward, new data from Arkham Intelligence could change people’s perspectives.
The data analytics and intelligence firm said that the cryptocurrency veteran has been shuffling around a few stablecoins in the past few hours with massive defunding from the Huobi exchange.
“Justin Sun has been shuffling around in some stablecoin positions for the past 24 hours. He initially withdrew $60 million worth of USDT, USDC and USDD from @HuobiGlobal, making deposits at @AaveAave. 12 hours later, he re-deposited 100 million USDC into Huobi,” the update reads.
Whether or not Sun’s withdrawals and deposits are fast in the HT crash is unknown, however, the transactions show that a large movement of funds can offset the balance of a relatively stable platform.
next
Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
