Tron’s Price Drops 8%, USDD Depegs Amid Huobi Turmoil

Tron (TRX), the 18th biggest token by market value, had its price drop significantly on Friday due to issues surrounding the cryptocurrency exchange Huobi.

Justin Sun, the creator of Tron, is part of Huobi’s board of advisors. The company said on Friday that it would be laying off 20% of its staff and would pay them in stablecoins. It reportedly shut off internal avenues of communication amongst personnel as well to quash a rebellion, as reported on Twitter.

The price of TRX has dropped by around 8% in the previous 24 hours. Price charts reveal that tokens might drop to as low as 3 cents if the price slips below the support level of 5 cents. On the previous day, Huobi’s native HT tokens dropped as much as 11% on the exchange.

The USDD token, based on Tron, lost 3 cents of its value, meaning it was no longer pegged to the dollar as intended. According to DefiLlama’s findings, the value of the tokens used to secure Tron-based dApps dropped by 2% due to this price movement.

Less than $1 million was liquidated in TRX futures on exchanges, indicating that the selling was primarily spot driven. Meanwhile, security company PeckShield reported that over $50 million was transferred from crypto wallet addresses associated with Sun to the crypto exchange Binance.

#PeckShieldAlert JustinSun-labeled address transferred ~10M $USDT from TRON to Binance 3 hours agohttps://t.co/j924jVs3IY pic.twitter.com/sM2v7wZezb

— PeckShieldAlert (@PeckShieldAlert) January 6, 2023

Users on the social media platform Twitter have been speculating about Huobi’s financial health and the security of consumer funds before the monetary shifts.

Neither Sun nor Tron nor Huobi quickly responded to our requests for comment.