After the lawsuit was filed against KuCoin the other day, the unrelated Huobi coin HT dropped from $4.81 to $0.31.
The New York Regulator sued the popular cryptocurrency exchange KuCoin the other day. With the impact of this news, a strong decline was observed in the cryptocurrency market. However, another exchange that was most affected by this news was Huobi. On Huobi, which is not related to the subject, the decrease in the price of Huobi Token, the local stock market coin, attracted attention. HT fell from $4.81 to $0.31 with a momentary price action, making it the target of criticism.
KuCoin Sued, Huobi Down!
In the time period when the news of the lawsuit against KuCoin fell, interesting movements were observed in HT, the local coin of the Huobi exchange. HT experienced a 93 percent drop and soon returned to its former price level.
On the Huobi Token (HT) side, the sharpest and strongest decline was observed in the pairs on the Huobi exchange. On other exchanges, HT fell as low as $1.
Huobi advisor and Tron founder Justin Sun attributed HT’s decline to the impact of leveraged liquidations in the market caused by several users. Sun apologized to all crypto users. Sun stated that they are working hard to improve liquidity.
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
In addition, Sun stated that they will establish a $100 million liquidity fund in order to improve their liquidity situation in the stock market. This fund will be fully denominated in US dollars and will strengthen the multi-currency liquidity of the platform.
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