The token, which is affiliated with Tron founder Justin Sun, fell from $4.81 to $0.31 on the Huobi exchange.
Huobi’s HT token, the cryptocurrency exchange’s native token, temporarily fell 93% on Thursday for unknown reasons.
Then it rebounded quickly.
The coin fell from a 24-hour high of $4.81 to a low of $0.31 on the Huobi exchange around 21:00 UTC, according to TradingView’s pricing source. Similar price drops were seen on other exchanges.
Just before the crash, a researcher at Kaiko tweeted that sales reached $2 million in the five minutes before the crash. Typically, the buy amount for the HT-USDT trading pair is around $600,000.
At press time, the token has rebounded and is trading at $3.70 on Huobi. It's down about 24% in the past 24 hours.
HT is one of the larger cryptocurrencies with a market capitalization of approximately $630 million (post-rebound), so the wild price action is notable. Cryptocurrency traders are focusing on the token in part because Justin Sun, founder of the Tron blockchain, revealed that in addition to being a leader in the exchange’s strategy, he is also a large holder.
Sun said in a tweet that Huobi exchange’s operations are secure, as are its wallets and backend. In a second tweet, he apologized for the "market leverage liquidation caused by a small number of users" and said Huobi would create a $100 million fund to improve multi-currency liquidity.
Update (March 10, 2023 00:53 UTC): Updated with Justin Sun's comments in the last two paragraphs.
Update (March 10, 2023 02:01 UTC): Added additional comments from Justin Sun.
