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Huobi Token (HT) sees 90% flash crash and rapid recovery in an hour

In the world of cryptocurrency, sudden price fluctuations are not uncommon, but the flash crash of Huobi Token (HT) during Thursday trading left many scratching their heads. The token, which is the native cryptocurrency of the Huobi Global exchange and based on the Ethereum blockchain, plummeted by a staggering 90% in just 25 minutes.

At 3:45 pm, HT was trading at $4.70. By 4:10 pm, it was down to $1.83. By 6:00 pm, it was back up to $3.90, which was still 30% lower than its starting price. The Huobi platform token then dropped from $4.6 to $0.31 in just 10 minutes, causing over $200,000,000 of market cap to disappear in an hour. However, the token quickly recovered by over 1000% within minutes.

The reason for the sudden price drop is still unclear, but some theories have been proposed. A tweet by a Kaiko researcher claimed that sales worth $2 million were reported in the five minutes leading up to the crash, significantly higher than the usual $600,000 buys on the HT-USDT pair. Some also speculated that the downturn was due to broader negative market sentiment, with the current market being in a downturn.

Justin Sun, founder of the Tron blockchain and a significant holder of the token, commented that the sudden crash was due to some users triggering a series of leveraged liquidation, which is a normal market behavior and fluctuation.

Despite the volatility of the cryptocurrency market, HT is one of the larger cryptocurrencies, with a market capitalization of approximately $630 million after the rebound. The token is used to reduce commissions for trading, purchase VIP-status plans, vote on exchange decisions, and receive crypto rewards. As such, it is closely watched by crypto traders and investors.

This flash crash serves as a reminder of the risks involved in investing in cryptocurrencies, where sudden price swings can occur in just a matter of minutes. It also highlights the need for caution and research before investing in any cryptocurrency.

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