93% HT Token Flash Crash on Huobi Exchange Sparks Outcry

• Huobi’s native HT token experienced a flash crash, dropping more than 93% of its value before quickly recovering.
• Data from the crypto price charting platform TradingView shows that the 24-hour high of $4.81 dropped to a low of $0.31 in just hours.
• Justin Sun, founder of the Tron blockchain and chief strategy advisor for Huobi, attributed the flash crash to leveraged liquidations caused by “a few users” triggering a chain reaction of forced liquidations.

Huobi’s HT Token Experiences Flash Crash

Huobi’s native HT token saw a sudden and sharp drop in value on March 10th, 2023 at 11:18 am UTC. The token saw an immediate 93% decrease from its 24-hour high of $4.81 as seen on crypto price charting platform TradingView, down to a low of $0.31 in just hours. While it has since recovered some losses, trading at $3.81 according to CoinMarketCap, it is still 20% below pre-crash levels.

$2 Million Sale Preceded Flash Crash

Financial data provider Kaiko researcher Riyad Carey tweeted that there had been about $2 million in sales in the five minutes leading up to the crash compared to only around $600k worth of buys on the main HT-USDT pair on Huobi exchange – significantly more than usual activity preceding such an event.

Uses for HT Token

The native HT token is used on Huobi Global exchange for various activities such as reducing trading commissions, purchasing VIP status plans, voting on exchange decisions and receiving cryptocurrency rewards. With a market capitalization currently at approximately $617 million, this notable incident has drawn investors‘ attention worldwide due to its significance as one of their more prominent cryptocurrencies available today

Justin Sun Blames Flash Crash On „Few Users“

Founder Justin Sun was quick to address user concerns over security with assurances that both the exchange and all funds were safe and secure while attributing this event solely back to leveraged liquidations initiated by „a few users“, which triggered further chain reactions resulting in forced spot and contract market liquidations across various markets simultaneously .

Liquidity Fund Established To Improve Platform’s Multi Currency Liquidity

In order to improve multi-currency liquidity within their platform following this incident, Huobi Exchange has announced plans for establishing a liquidity fund with an investment amounting up to 100 million US dollars as per Mr Sun’s tweet above .