Huobi Token, the native digital asset of Huobi Group, experienced a sudden plunge of 90% in just a few minutes, sparking rumors of insolvency. The incident sent shockwaves throughout the cryptocurrency industry and raised concerns about the stability of Huobi Group, one of the largest digital asset exchanges. The sudden decline of Huobi Token’s value has led many investors to question the safety and reliability of investing in digital assets. The incident also highlights the importance of conducting thorough research and due diligence before investing in any cryptocurrency or digital asset.
Huobi Token (HT) has been in the spotlight for insolvency rumors after a steep decline of 90% in just a few minutes, following the overall crypto market plunge. Cryptocurrency community members are concerned about whether the exchange will go under. HT was trending at a stable price of $4.4 until the market declined, leading to rock-bottom prices of $0.3. Despite its partial recovery, HT’s market capitalization took a hit, and it has fallen to number 67 on the list of top cryptocurrencies by market cap. HT’s trading volume increased by 363% in the last 24 hours, reaching $58 million. Rumors about the exchange’s insolvency were debunked by Tron founder Justin Sun, who sent 100 million USDC to Huobi to provide more liquidity. However, a chart from early 2023 indicates that while Binance’s quarterly estimated revenue has increased since 2021, Huobi’s has decreased 98%. This could imply that Huobi is in trouble, and if it does go insolvent, it could have disastrous effects on the crypto market. The advice for cryptocurrency investors is to move coins from centralized exchanges to self-custody wallets.