Huobi Token Flash Crashes as Crypto Markets Dump $70 Billion

In Brief

• Huobi Token briefly tanked below $0.40.
• HT managed to recover, but is still down 20% on the day.
• Crypto markets have shed $70 billion in 12 hours.

The Huobi exchange token HT flash crashed a few hours ago but has since made a quick recovery. However, company advisor Justin Sun brushed it off as ‘market behavior.’

There have been some strange happenings with the Huobi token recently. In the early hours of March 10, HT flash crashed from around $4.70 to close to below $0.40 in a matter of minutes.

The exchange token hit an intraday high of $4.92 on March 9. However, it has since lost almost 20% on the day, currently trading at around $3.95.
Furthermore, the massive liquidation event sent Huobi token to a new all-time low, albeit very briefly.

Justin Sun Dismisses Huobi Token Dump
Huobi advisor and TRON founder Justin Sun was quick to dismiss the flash crash. In response to the reaction on crypto Twitter, he stated that the exchange and all funds were safe.

He explained that these leveraged liquidations were caused by a ‘few users’ triggering a cascade of forced liquidations in spot and contract HT markets.

“Currently, all work is proceeding steadily and there are no unexpected incidents, and these fluctuations are simply a result of market behavior.”

Sun stated that Huobi would fully bear any losses caused by HT market fluctuations. Additionally, he added that a liquidity fund of $100 million would be invested to improve the liquidity depth on the exchange, according to Wu Blockchain.

Furthermore, blockchain sleuth “Lookonchain” has uncovered some recent stablecoin movements by the TRON founder.

On March 9, Justin Sun withdrew $80 million in stablecoins from Huobi. These were comprised of $40 million in USDT, $20 million in USDC, and $20 million in USDD, TRON’s native stablecoin. $60 million of them were deposited in his own DeFi platform JustLend and Aave.

Crypto Markets Dump $70 Billion
Crypto markets crashed during the Friday morning Asian trading session. The big dump comes at the end of a week of media FUD and intensified regulatory crackdowns in the United States.

Markets dumped $70 billion, or around 7%, over the past 12 hours. As a result, total capitalization has fallen to a two-month low of $969 billion at the time of writing.

BTC dumped 7.9% on the day, falling below $20,000, and is currently trading at $19,926. Meanwhile, ETH tanked 7.5% in a slide to $1,420 at the time of press.

Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.