• Huobi Token (HT) experienced a 90% flash crash during Thursday trading, only to recover by over 1000% minutes after.
• The decline led to over $200,000,000 of market cap gone from HT within an hour.
• This price volatility is particularly noteworthy since HT is one of the larger cryptocurrencies, with a market capitalization of approximately $630 million after the rebound.
Huobi Token (HT) Experiences Flash Crash
Huobi Token (HT), the native cryptocurrency of the Huobi Global exchange, saw a 90% flash crash during Thursday trading. At 3:45 pm, HT was trading at $4.70 and by 4:10 pm it was down to $1.83. By 6:00 pm, it had recovered back up to $3.90, 30% lower than its starting point for the day. This led to over $200 million in market cap being lost from HT within an hour, only to recover by over 1000% minutes after.
Causes Behind Flash Crash
A tweet by Kaiko researcher reported sales worth $2 million in the five minutes leading up to the crash which is notably higher than the usual $600k buys on the HT-USDT pair. Some speculated that broader negative market sentiment may have contributed to this downturn as well since exchanges are highly susceptible to macro events impacting crypto prices overall.
Sizeable Market Capitalization
The price volatility of HT is particularly noteworthy given its sizeable market capitalization of approximately $630 million after its rebound from the flash crash. Justin Sun, founder of Tron blockchain and a significant holder of token also plays a key role in Huobi’s strategy making it a closely watched asset by crypto traders worldwide.
Huobi Eyeing Hong Kong License
Recently Justin Sun expressed confidence that Huobi would be able to secure their license for operations in Hong Kong soon which could potentially open new doors for adoption and growth for this platform as well as its native token HT among Asian markets especially China where most other exchanges have been banned or shut down due their non-compliance with regulations set by government bodies such as PBOC (People’s Bank Of China).
Overall this flash crash highlights just how unpredictable and volatile cryptocurrencies can be despite having sizable market caps and reputations amongst traders worldwide with large amounts money being made or lost within mere hours depending on when you buy or sell at any given time .