Why Did Huobi Token Fall by 93%?

Sahana Kiran
Source – Crypto News

The entire cryptocurrency market is in a muddle. Amidst this, Huobi Token [HT] was dealing with a crisis of its own. The native token of the prominent cryptocurrency exchange, abruptly dropped by 93%. HT declined from a high of $4.81 to a low of $0.31.

At press time, HT was trading for $3.83 with a 21.13% daily drop. The 24-hour trading volume of the asset surged by 329%. This was further linked to the increased selling activity in the HT market.

Source – HT/USD Chart on TradingView

In the one-hour chart of HT, the crash as well as the recovery have been highlighted. In addition, the native token of Huobi moved from the oversold zone to recovering buying pressure. The Relative Strength Index [RSI] indicator highlighted this factor.

This crash was triggered by the $2 million worth of sales that occurred within 5 minutes. Data from Kaiko noted that this was far more than the $600K worth of buys on the HT-USDT pair.

The cryptocurrency community was undoubtedly baffled. Therefore, Justin Sun, who plays an important role at Huobi, reassured users that funds in the exchange were safe. He apologized for the “impact of the leveraged liquidation” that was caused by certain users. Addressing the need to boost multi-currency liquidity, Huobi revealed that it will set up a liquidity fund with an investment of $100 million.

Huobi to soon stop its NFT services

The exchange revealed that it would discontinue its Huobi NFT services. Starting from May 13, 2023, users won’t have access to NFTs. The reason behind this was the adjustments to the Huobi Cloud Wallet. The exchange wrote,

“Please note that all NFT assets must be transferred out of Huobi NFT before the deadline. You can do this by transferring your NFTs from your Huobi Cloud Wallet to your on-chain wallet.”