Panic Selling Has Started On This Bitcoin Exchange!

In the last 24 hours, the Bitcoin and altcoin market has faced many adversities. One of the highlights was the momentary 90 percent drop in Huobi’s altcoin HT. Although measures have been taken to address this situation, investors seem to have started panic selling in the stock market. Here are the details…

Bitcoin exchange sees fund outflow

In the fast-paced world of cryptocurrency, volatility is not uncommon. However, recent events regarding Huobi Token (HT) have highlighted the risks of investing in cryptocurrencies in general. As we reported as Kriptokoin.com, HT experienced a 90 percent flash crash on March 9th. It healed quickly in just an hour. This sudden drop in value was attributed to sales from investors who were concerned about the status of the Huobi stablecoin reserve. As it turned out, these concerns were not unfounded. According to data from CryptoQuant, the total reserve of Huobi stablecoin has dropped significantly by $72.1 million in the past 24 hours.

While Bitcoin (BTC) reserves of $33.1 million, Ethereum (ETH) $10.3 million and other altcoins saw a $13.9 million drop in funds, the net flow of various cryptocurrencies also saw a decline. Stablecoins took the hardest hit with a $14.8 million drop. These developments led to widespread speculation about the future of HT and the Huobi exchange. While some analysts believe this is a temporary downturn, others are more cautious, urging investors to be prepared for further declines.

100 million dollar liquidity fund established

Huobi advisor and TRON founder Justin Sun dismissed speculations behind the sudden collapse. In response to the backlash on Crypto Twitter, he stated that the exchange and all funds are safe. He explained that as we reported, these leveraged liquidations were due to “several users” triggering a series of forced liquidations in the spot and contract HT markets. Sun stated that Huobi will fully cover the losses caused by the fluctuations in the HT market. Additionally, he added that a $100 million liquidity fund will be invested to increase the depth of liquidity in the stock market.

Also, blockchain detective “Lookonchain” uncovered some recent stablecoin moves by the TRON founder. On March 9, Justin Sun withdrew $80 million worth of stablecoins from Huobi. These included $40 million USDT, $20 million USDC, and $20 million USDD, TRON’s native stablecoin. $60 million of that has been invested in its own DeFi platform JustLend and Aave.

Exchange updates PoR data

It’s worth noting that Huobi is transparent about reserve levels, with regular updates to its proof-of-reserves (PoR) dashboard. However, these recent developments have highlighted the risks inherent in investing in cryptocurrency, especially in volatile markets. In light of these events, it is important for investors to be cautious and do their own due diligence before investing in crypto assets. While cryptocurrency can be a lucrative investment, it is quite a market that requires careful consideration and risk management.