Huobi Token (HT) Flash Crash, Sun Withdraws $80M StableCoins
- Founder of DAO blockchain ecosystem withdrew stablecoins worth $80M from Huobi exchange.
- Market fluctuations were caused by a few users who triggered forced liquidation.
- HT breaks out from a descending triangle; the death cross had no negative effects on the token.
Onchain Data Analysis Tool Lookonchain revealed that Justin Sun, the founder of the blockchain DAO ecosystem Tron, had withdrawn stablecoins worth $80M from Huobi exchange. The stablecoins he withdrew included $40M USDT, $20M USDC, and $20M USDD. Thereafter, Justin deposited 40M $USDT and 20M $USDC to Aave and JustLend exchange.
About 12 hrs ago, #JustinSun withdrew $80M of stablecoins from #Huobi, including 40M $USDT, 20M $USDC and 20M $USDD.Then deposited 40M $USDT and 20M $USDC to #Aave and #JustLend.https://t.co/bES1MmA7E7https://t.co/cuMtGXUW7Jhttps://t.co/WEj3B55vtM pic.twitter.com/Le57Za3xh2
— Lookonchain (@lookonchain) March 10, 2023
Sun made these transfers after the Huobi token (HT) had a flash crash on Thursday. The token plummeted from a 24-hour-high of $4.81 to a low of $0.31, a drop of 93% in its price. However, a netizen tweeted that the HT-USDT pair recorded sales worth $2M compared to just $600k of buys on Huobi during the five minutes leading up to the crash.
Sun who is a major shareholder of the Huobi exchange stated to sources:
The recent market fluctuations and the leveraged liquidations were caused by a few users triggering a cascade of forced liquidations in the spot and HT contract markets.
Furthermore, while apologizing on behalf of the Huobi exchange, Sun tweeted:
We deeply apologize for the impact of the leveraged liquidation on the market caused by a few users, and in order to further improve the multi-currency liquidity of the @HuobiGlobal platform, we will set up a liquidity fund with an investment of 100 million US dollars.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
Meanwhile, when considering the 1-day chart below, HT has been fluctuating within a descending triangle. After breaking the triangle, HT started consolidating. Interestingly, the death cross didn’t seem to have an effect on HT when the 50-day MA crossed the 200-day MA from above.
HT/USDT 1-Day Chart (Source: Tradingview)
Despite taking a great fall, HT was able to bounce right back to its usual trading area. Moreover, the token is below the lower Bollinger band, hence, there could be a correction in the future. As such, this could be a perfect entry point for those going long. But the question is, will HT surge in the future? Or are there a few more twists to unwind?
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk, Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
The post Huobi Token (HT) Flash Crash, Sun Withdraws $80M StableCoins appeared first on Coin Edition.
See original on CoinEdition