New reports show that TRON founder Justin Sun has withdrawn a large amount of altcoins from Huobi, of which he is an advisor. Huobi Token (HT) lost 90% of its value yesterday and Sun apologized to users for the sudden drop.
TRON founder pulled a large amount of altcoins from Huobi
On-chain data analytics platform Lookonchain has found that Tron founder Justin Sun has withdrawn $80 million worth of stablecoins from Huobi. Among the stablecoins it attracted were 40 million USDT, 20 million USDC and 20 million USDD. Later, Sun deposited 40 million USDT and 20 million USDC on the Aave and JustLend exchanges.
Sun soon invested 100 million USDC back into Huobi. According to their statement, the rapid decline and subsequent recovery was due to “leveraged liquidation caused by a few users in the market.” The TRON founder says he has invested 100 million USDC back in Huobi to support liquidity in the exchange.
About 12 hrs ago, #JustinSun withdrew $80M of stablecoins from #Huobi, including 40M $USDT, 20M $USDC and 20M $USDD.
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
— Lookonchain (@lookonchain) March 10, 2023
The Houbi crisis comes in the midst of a broad crypto market correction as $307 million worth of positions across the market have been liquidated as traders digest the impact of Silvergate Bank’s exit from its deals with crypto companies. As Kriptokoin.com, we stated that a few more crypto companies may come up with similar news.
“We will continue to improve the liquidity depth of major cryptocurrencies and HT token, strengthen leverage risk alerts and liquidity capabilities,” Sun tweeted later in the day. During the collapse of the HT token, Houbi was caught off guard to support liquidity.
Had $2 million worth of sell orders despite $600,000 purchase
Sun made stablecoin transfers after Thursday, when the Huobi token (HT) dropped 90%. Huobi (HT) bottomed out from $4.81 to $0.31, down 93% on March 9th. But the data tweeted that during the five minutes before the crash it recorded $2 million worth of sales compared to just $600,000 purchases on Huobi. Sun, the main shareholder of the Huobi exchange, told sources:
Recent market fluctuations and leveraged liquidations have resulted from several users triggering a series of forced liquidations in the spot and HT contract markets.
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
How about altcoin price?
Meanwhile, looking at the 1-day chart below, HT is fluctuating within a descending triangle. After breaking the triangle, HT started consolidating. Interestingly, the 50-day MA didn’t seem to have any effect on the death cross when it crossed the 200-day MA from above.
HT managed to get back to its normal trading area despite a big drop. Also, the token is below the lower Bollinger band, so technical analysis may see a correction in the future.
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