Huobi has created a $100 million liquidity fund to protect against sudden drops in the HT token’s value. This move came in response to a rapid drop and rebound in the token’s value caused by leveraged liquidation on the market.
Justin Sun, a major holder of HT, confirmed a transfer of $100 million in USDC to Huobi to improve the liquidity depth of cryptocurrencies and HT token, strengthen leverage risk warnings, and liquidity capabilities.
The drop in the value of HT occurred amid a broader crypto market correction and the liquidation of $307 million in positions as traders assessed the impact of Silvergate’s exit from banking crypto companies.
HT dropped from a 24-hour-high of $4.81 to a low of $0.31 at 21:00 UTC on Huobi’s exchange. However, the token has since rebounded and is currently trading at $3.90, according to CoinGecko.
Sun’s plan to revitalize Huobi includes empowering HT and promising brand upgrades, heavy empowerment, and business cooperation.
This $100 million liquidity fund is a significant step towards achieving that goal. Sun’s transfer of $100 million in USDC to Huobi is expected to improve the liquidity depth of cryptocurrencies and strengthen leverage risk warnings and liquidity capabilities.
It is important to note that Sun had also transferred $60 million in USDT to Aave, which was unrelated to the Huobi liquidity fund. This transfer was flagged by Nansen.ai in an earlier tweet.