Huobi token saw a 90% flash crash, recovery; community blames high sales, market downturn

admin March 10, 2023

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Huobi, the 17th largest cryptocurrency exchange, suffered a flash crash during trading on Thursday, sending its native token down 90%.

At 3:45 pm, HT was trading at $4.70. By 4:10pm, the price had dropped to $1.83. By 6pm he was up $3.90, 30% cheaper than at the start of the day.

Huobi Transaction View — (Source: Trading View)

Huobi Token (HT) is the native cryptocurrency of the Huobi Global exchange based on the Ethereum blockchain, launched in January 2018. Used to reduce transaction fees, purchase VIP status plans, vote on exchange decisions, and receive crypto rewards.

The drop robbed HT of over $200 million in market cap within an hour and recovered over 1000% within minutes.

Today’s token flash crash has led to some interesting theories online.

Silkworm claims high sales

A Kaiko researcher tweeted that $2 million worth of sales were reported in the five minutes leading up to the crash. Despite his 24% drop in the last 24 hours, the token has rebounded and is currently trading at $3.70 on Huobi.

market downtown

Some speculate that the recession has something to do with broader negative market sentiment. @IdleHeroesTT Said: “Exchanges are a blessing and a curse. I really feel that crypto price appreciation can truly continue only if there is a credible (apart from macro events) regulated fiat entrance. I’m sorry you came.”

This price move is particularly noteworthy as HT is one of the larger cryptocurrencies with a post-rebound market cap of around $630 million. Justin Sun, the founder of the Tron blockchain and a key holder of the token, has also become a key figure in the exchange’s strategy and a sought-after asset by crypto traders.

Huobi seeks Hong Kong license

Recently, Sun expressed confidence that one of Asia’s leading blockchain platforms, Huobi, was granted a Virtual Asset Service Provider (VASP) license by Hong Kong’s Securities and Futures Commission (SFC).

Two weeks ago on that news, the price of HT Token surged by 24%.

A new licensing regime was enacted on March 1 to ensure compliance with anti-money laundering and counter-terrorism financing, as outlined by the Financial Action Task Force.

Huobi was the first cryptocurrency exchange to apply for a license, and has held talks with the SFC to advise on the development of a suitable digital asset framework, although Sun previously denied any involvement with Huobi. , later admitting to taking an advisory role at the exchange.

The day before the big flash crash on March 9th, Huobi made an ominous tweet.