The fall of bitcoin this night took many market participants by surprise. But traders were even more surprised by another strange thing. The $HT token, owned by the Huobi crypto exchange, suddenly collapsed. The exchange rate dropped from about $5 to $0.5. And this is a drop of as much as 90%.
Huobi Token Ladies & Gentlemen
90% crash and 1,000% pump in minutes. @HuobiGlobal @HuobiFutures_ #HTUSDT #HT pic.twitter.com/eITEcupDcr
— Duo Nine
discord.gg/ycc (@DU09BTC) March 9, 2023
Buyers instantly used such a dump and rushed to buy tokens.
True, then the price began to level off. The current rate of the HT coin is about $3.8 (20% loss per day). It looks like the token is slowly stabilizing.
Subscribers in social networks are scratching their heads, trying to understand the reason for such incidents. There have been many different theories, starting with Huobi being insolvent or that traders learned some insider information.
Later, Justin Sun, the founder of the Tron blockchain and a major holder of HT tokens, commented on the situation. He stated that the Huobi exchange, as well as customers’ wallets, are completely safe.
The operation of @HuobiGlobal exchange is #SAFE, the wallets are SAFE, and the backend is SAFE. The recent market fluctuations and the leveraged liquidations were caused by a few users triggering a cascade of forced liquidations in the spot and HT contract markets.
— HE Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
According to Sun, the incident was caused by market fluctuations, as well as mass liquidations using leverage.
We deeply apologize for the impact of the leveraged liquidation on the market caused by a few users, and in order to further improve the multi-currency liquidity of the @HuobiGlobal platform, we will set up a liquidity fund with an investment of 100 million US dollars.
— HE Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
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