Huobi, one of the leading cryptocurrency exchanges, has announced the creation of a $100 million liquidity fund to protect against significant drops of its HT token.
This move comes in response to a sharp drop in HT’s value late Thursday U.S. time, which was caused by leveraged liquidation on the market. Justin Sun confirmed the transfer of $100 million in USDC to Huobi just after 04:25 UTC, or 11:27 AM Hong Kong time.
The broader crypto market has also experienced a correction, with $307 million in positions across the market being liquidated as traders digest the impact of Silvergate’s exit from banking crypto companies.
Huobi has pledged to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings, and enhance liquidity capabilities to prevent such drops in the future.
HT dropped from a 24-hour-high of $4.81 to a low of $0.31 at 21:00 UTC on Huobi’s exchange, as per data from TradingView.
However, in October, HT rallied nearly 75%, with Sun promising big moves around HT, including brand upgrades, heavy empowerment, and business cooperation, to revitalize Huobi and empower HT.
Justin Sun was also in the news for transferring $60 million in USDT to Aave, as per a tweet from Nansen.ai. However, this transfer was unrelated to the creation of the Huobi liquidity fund.
