"The investor's heart must stop for a moment, right, seeing HT drop like that."
Investors must have been surprised when Huobi Token (HT) founded by crypto exchange company Huobi Exchange plunged drastically by 90% to $0.31 in just 10 minutes, but has now recovered to around $3.80.
Justin Sun who has fully acquired Huobi has been the cause of crypto-based Tron (TRX) also affected as it plunged more than 12% in the last 24 hours to reach $0.05745.
Even so, Sun assured that Huobi's operations were safe and stated that such incidents were normal.
Sun, which is the major holder of HT has apologized for the fluctuations in the price of the digital asset caused by some users which triggered a leveraged liquidation in the market.
Following that, Sun intended to establish a liquidity fund with an investment of $100 million for those affected, where he was found to have transferred some of the funds in stablecoin USDC to Huobi.
Sun also revealed that Huobi was not only tasked with bearing all the leverage losses faced by them but also strengthened the leverage risk and liquidity capability.
According to Kaiko research analyst Riyad Carey, over $2 million in HT was sold on Huobi in the minutes before the unfortunate incident occurred while Sun reportedly transferred $60 million in USDT from Huobi to Aave.
