- Tron founder Justin Sun has completed a $100 million USDC transfer to create the Huobi Liquidity Fund.
- The fund was created after the HT token lost more than 90% of its value yesterday.
Justin Sun Launches The Huobi Liquidity Fund
Cryptocurrency exchange Huobi now has a $100 million liquidity fund after it was created by Justin Sun, the founder of the Tron blockchain.
The fund was created to protect the cryptocurrency exchange against precipitous drops of its HT token following what happened on Thursday, March 9th.
Justin Sun confirmed the transfer of $100 million in USDC to the cryptocurrency exchange in the early hours of today.
We have transferred 100 million #USDC to @HuobiGlobal. Done. https://t.co/0TbCsH2ixn https://t.co/XWeHI3FriZ— H.E. Justin Sun 孙宇晨 (@justinsuntron) March 10, 2023
A few hours ago, HT, the native token of the Huobi crypto exchange, lost over 93% of its value, from $4.81 to $0.31. The token immediately recovered. However, some traders lost their funds during the process.
Justin Sun explained that the rapid dip and rebound of the HT token was a result of leveraged liquidation on the market caused by a few users. The poor performance came at a time when the broader crypto market saw over $300 million in positions across the market liquidated.
Silvergate’s exit from the cryptocurrency ecosystem was one of the main reasons behind the strong bearish sentiment in the market.
The Tron founder added, “We will continue to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities.”
Justin Sun previously revealed that he is a major holder of the HT token. At press time, HT is trading at $3.84, down by more than 20% over the last 24 hours.