- The head of the exchange confirmed the transfer of 100 million USDC to Huobi Global accounts
- The day before, the exchange rate of the site’s native token fell by 93% in 10 minutes
On the evening of Thursday, March 9, the native token of the Huobi exchange collapsed by 93%, from $4.81 to $0.31. Half an hour later, the rate recovered to $3.7, the increase exceeded 1000%.
Huobi CEO Justin Sun commented on the situation, noting that this is the result of normal market behavior. And both the exchange itself and SAFU wallets.
A little later, he added that the situation was affected by the liquidation of funds by several large holders. Sun also apologized to those traders who were affected by the drawdown.
Early this morning, March 10, at 04:25 UTC, the head of Huobi confirmed the transfer of 100 million USDC to Huobi Global accounts. These funds will form the basis of the exchange’s liquidity fund.
The aim of this initiative is to prevent such rate fluctuations in the future. Unfortunately, at the moment it is not known who exactly leaked such a large amount of HT that it affected the course. Interestingly, Sun himself is a major holder of these tokens.
“We will continue to improve the liquidity situation for other cryptocurrencies. We will also develop a system of warnings related to the risks of using leverage. Regarding the recent incident, we will keep you updated.” emphasized San.
Some members of the cryptocurrency community considered the statement of the head of Huobi unconvincing. There are quite a few theories as to what happened to HT’s price, and some of them are related to the Silvergate liquidation.
