Huobi’s HT token, one of the larger cryptocurrencies with a market capitalization of about $630 million, experienced a wild price swing on Thursday, dropping 93% on the Huobi exchange before quickly rebounding.
The HT token, which is affiliated with Tron founder Justin Sun, dropped from a 24-hour-high of $4.81 to a low of $0.31 at around 21:00 UTC, according to TradingView’s pricing source. Other exchanges also saw a similar drop in price.
According to a researcher at Kaiko, the sudden drop in price is being attributed to $2 million worth of sales in the five minutes leading up to the crash, which is well above the normal buys on the HT-USDT pair, typically amounting to about $600,000. However, it's unclear who was behind the sales and what their motivations were.
https://twitter.com/riyad_carey/status/1633959091381870595
In response to the crash, Sun took to Twitter to assure traders that Huobi's operations, wallets, and backend are safe. He also apologized for the "leveraged liquidation on the market caused by a few users," and promised that Huobi will create a $100 million fund to improve multi-currency liquidity.
https://twitter.com/justinsuntron/status/1633996650438959104?
As of the time of writing, the HT token had rebounded and was trading at $3.70 on the Huobi exchange.
Despite the rebound, HT is still down about 24% over the past 24 hours. The volatility of the cryptocurrency markets is well-known, but this sharp and sudden drop and rebound of HT is notable even in a space where such price swings are not uncommon.
https://twitter.com/justinsuntron/status/1633981359738724354?
As always, investors and traders are reminded to exercise caution when investing in cryptocurrencies and to do their due diligence before making any investment decisions.
