- He stated that he was open to ideas and ready to invest in the project.
- Prior to this, Huobi experienced a micro-crisis
- The exchange token fell in price by 95%, but then regained positions
- The community attributes this to the current situation around crypto banks.
Last Friday, March 10, Silicon Valley Bank officially suspended operations. Before that, another major Wall Street bank, Silvergate Capital, closed. This may be the stone that will cause a new avalanche that will bury the entire market under it.
Tron Founder Justin Sun commented situation, noting the following:
“Recent events, including those related to SVB, only highlight the depth of the potential damage to the cryptocurrency industry. Now is the time to create a truly reliable bank that is able to meet the demands of the industry. As a supporter of this decision, I am open to any interesting idea.”
According to the head of Huobi, such a counterparty can work both locally and internationally. Sun is ready for cooperation and investment in a promising project.
Note that both SVB and Silvergate are crypto-friendly banks. Their elimination will hit both the industry as a whole and its largest “players”.
Binance CEO Changpeng Zhao even suggestedthat the authorities are involved in the situation:
“They (the government) FUDed us and the banks burst.”
But can Sun finance such an ambitious project? We previously reported that the native Huobi token dropped 95% in just a few minutes.
In response, Sun announced the creation of a liquidity guarantee fund. He explained the fall in the price of the token by the liquidation of private accounts. But crypto skeptics believe that this is the result of the exchange’s close relationship with Silvergate Capital.