Thu. Feb 22nd, 2024

• Huobi Token (HT) experienced a massive 90% drop in price in minutes on Thursday.
• Following the plunge, rumors of insolvency spread quickly and Justin Sun sent 100 million USDC to provide liquidity.
• Despite this, there is evidence that Huobi has seen a 98% decline in its quarterly estimated revenue since 2021.

Huobi Token (HT) Plunge

Huobi Token (HT) was trending at a price of $4.4 before experiencing a shocking performance on Thursday with a massive 90% drop in just a matter of minutes. This placed it among the top losers in the market, coming behind Singularity Net (AGIX) which lost 21.74% of its value in the 24-hour period. Its market cap took a hit as well, falling over 20%. Trading volume for HT saw an increase though, up 363% in the last 24 hours to be sitting at $58 million.

Insolvency Rumors

The plunge triggered rumors across the crypto community that Huobi Exchange may be insolvent. In response, Tron founder Justin Sun sent 100 million USDC to provide more liquidity and debunked the rumors that the exchange is insolvent attributing it to “impact of leveraged liquidation on the market caused by a few users.”

Quarterly Estimated Revenue Decline

A chart from early 2023 showed that while Binance saw an increase in its quarterly estimated revenue since 2021, Huobi has seen a 98% decline in its quarterly estimated revenue, which could mean that the crypto exchange could be facing financial difficulties.

Market Response

The flash crash sparked worries amongst investors but despite this HT was able to regain most of its lost value and is currently sitting at $3.5 and back up to 67th place on top cryptocurrencies by market cap list with over $619 million market capitalization

Conclusion

The recent flash crash of Huobi Token (HT), followed by rumours of insolvency have caused worry amongst investors even though it has managed to recover most of its losses so far. However, with evidence showing that Huobi has seen major declines in its estimated revenue since 2021 it remains uncertain whether or not it can remain afloat financially going forward.

By admin