The flash crash of Huobi’s native token HT has caused uncertainty among crypto market participants. However, Justin Sun, advisor to Huobi, has announced the creation of a $100 million USDC liquidity fund to strengthen leverage risk warnings and liquidity capabilities. In this article, we’ll discuss how this plan could help fuel HT’s recovery and the recent merger of Huobi and Poloniex.
Justin Sun’s Plan for Huobi Token’s Recovery
Justin Sun has dismissed the 93% flash crash of Huobi’s native token HT as market behavior and leveraged liquidation by crypto traders. He has announced the creation of a $100 million USDC liquidity fund to improve the liquidity depth of main cryptocurrencies and the native token HT. Sun’s plan is to strengthen leverage risk warnings and liquidity capabilities.
Representatives for the entrepreneur have previously disclosed that he is not an owner of Huobi, but he owns tens of millions of HT tokens. Therefore, Sun’s plan for Huobi token’s recovery is worth its weight in the crypto community.
Huobi Token’s Flash Crash and Similarities with FTT Collapse
Huobi’s native token declined from a 24-hour high of $4.81 to a low of $0.31 on Thursday, causing uncertainty among crypto market participants. However, HT price recovered from its decline and the native token of the exchange is trading at $3.79 at press time.
Now defunct FTX exchange’s native token FTT nosedived from $22 to $2 in less than five days, playing a key role in FTX’s bankruptcy. The flash crash of Huobi’s native token HT has similarities with FTT collapse. However, Sun’s liquidity fund creation and assurance that the exchange will bear all leverage-through position losses on the platform could help fuel HT’s recovery.
Huobi and Poloniex Merger
In the middle of the crypto winter, Justin Sun merged his two exchanges, Huobi and Poloniex, to create a new crypto ecosystem. The merger has created a combined user base of over 10 million and a daily trade volume in billions of dollars.