Huobi Token (HT) experienced a sudden flash crash in the early hours of March 10, dropping from around $4.70 to below $0.40 in just minutes.
However, the token has since made a quick recovery, and Huobi advisor and TRON founder Justin Sun has brushed off the incident as just “market behavior.”
The exchange token had hit an intraday high of $4.92 on March 9, but it has since lost nearly 20% on the day and is currently trading at around $3.95.
Despite briefly hitting a new all-time low due to the massive liquidation event, Sun has stated that the exchange and all funds are safe. According to him, the leveraged liquidations were triggered by “a few users” and resulted in forced liquidations in spot and contract HT markets.
“These fluctuations are simply a result of market behavior,” Sun said in response to the reaction on Twitter.
Furthermore, Sun stated that Huobi would fully bear any losses caused by HT market fluctuations. He also announced that a liquidity fund of $100 million would be invested to improve the liquidity depth on the exchange, as reported by Wu Blockchain.
In addition, blockchain sleuth “Lookonchain” revealed that Sun withdrew $80 million in stablecoins from Huobi on March 9, which included $40 million in USDT, $20 million in USDC, and $20 million in USDD, TRON’s native stablecoin. The $60 million of these stablecoins were deposited into Sun’s own DeFi platform JustLend and Aave.
Despite the flash crash, HT has quickly recovered and seems to be stabilizing. Sun’s quick response and willingness to invest in the liquidity fund are promising signs for Huobi’s future, and investors will likely keep a close eye on the token’s movements in the coming days.
