econintersect.com
The crypto market is wild, and nobody can predict what happens next. Many coins are making headlines, and Huobi Global, Huobi Token, has joined the list with its flash drop from $4.9375 to about $0.313.
Based on a screenshot shared by a Twitter crypto influencer on March 9, the native token of the Chinese Huobi Global exchange, HT, flash crashed by 93% from a daily high of $4.9375 to around $0.313. The coin then rebounded by more than 1084% within ten minutes to trade at $3.0954.
bruh pic.twitter.com/ixoDYwTc2r
— db (@tier10k) March 9, 2023
This development stirred the entire crypto space with uncertainty, fear, and doubt given that the Chinese asset manager has a recent history of instability with the USDD stablecoin. Based on a tweet by Kaiko, an institutional-grade cryptocurrency market tracker, five minutes before this infamous collapse, transactions of $2 million got registered, which was a lot more than the normal $600,000 purchases on the HT/USDT pair.
Nevertheless, Huobi Global’s advisor Justin Sun tweeted that the exchange was safe, including all its wallets and backend. Sun insisted that the recent volatile market fluctuations and the leveraged liquidations were caused by several users triggering a cascade of forced liquidations in the HT contract and spot markets. He added:
“All work is proceeding steadily, and there are no unexpected incidents.”
The operation of @HuobiGlobal exchange is #SAFE, the wallets are SAFE, and the backend is SAFE. The recent market fluctuations and the leveraged liquidations were caused by few users triggering a cascade of forced liquidations in the spot and HT contract markets.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
While the 24-hour trading volume of the Huobi token is up by more than 333%, the coin lost its past ranking among the most significant tokens by market capitalization, based on CoinMarketCap data.
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In January, Huobi allegedly closed communication with some internal employees, making them rebel and directly rug away user assets, with developers adding backdoor Trojan horses. In that context, crypto analytics company Nansen mentioned that the withdrawal volume of the Huobi Token in a 24-hour period was 64% more than its seven days cumulative outflows.