Justin Sun Has Sent $100 Million USDC To Huobi As A Liquidity Fund 

Key Points:

• HUOBI invested $100 million in a liquidity fund and experienced all HT volatility as a result of the loss of leverage.
• According to Justin Sun, the purpose of this step is to improve the multi-currency liquidity of the Huobi platform.

On March 10th, Whale Alert data revealed a transfer of 100,000,000 USDC from Justin Sun’s wallet address to Huobi. Sun confirmed the transaction shortly after it was discovered.

Justin Sun indicated earlier today that Huobi will totally bear the loss of leveraged positions caused by HT market swings and will invest $100 million US dollars to establish a liquidity fund. Sun apologized to HT users for the impact of volatility brought on by a tiny number of user-leveraged clearing houses. To boost the multi-currency liquidity of the Huobi platform, the company plans to invest $100 million in establishing a liquidity fund, as well as continue to improve the primary currency, HT liquidity depth, alerts leverage, and liquidity. Moreover, Justin Sun noted that for this event, Huobi wishes to keep the community updated on the following steps.

Recently, after the crypto market crash on March 10, Huobi’s HT currency plunged from $4.71 to $0.31 on the parent platform, confusing investors. Following the direction of the crypto market, the price of HT traded on Huobi has begun to fall since 03:30 AM. Yet, at around 04:00 AM, Huobi’s own coin soared from 4.71 USD to 0.31 USD in under 15 minutes, then swiftly rebounded to its previous position. HT’s 93% dump was also reported on other platforms that offered this currency, such as KuCoin, Gate.io, and others, however on those exchanges, the price only retreated to 1 USD before recovering, which was not as significant as it was at Huobi.

The disparity between buy and sell orders for HT on Huobi, according to data analysis unit Kaiko, is the reason of the drop. In particular, the HT buy wall was just $600,000 thick in the 5 minutes before the dip, while the entire value of sell orders was $2 million.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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