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Onchain Data Analysis Tool Lookonchain revealed that Justin Sun, the founder of the blockchain DAO ecosystem Tron, had withdrawn stablecoins worth $80M from Huobi exchange.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.
— Lookonchain (@lookonchain) March 10, 2023
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
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.
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?
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