Huobi’s HT token had a dramatic decrease in its value, dropping from $4.81 to $0.31 on the Huobi exchange before quickly recovering. The cause of this sudden price fluctuation has yet to be determined, but experts are currently investigating the matter.
The crypto community was left perplexed by the sudden and drastic drop in value followed by a quick recovery of the price. Many were left wondering what could have caused such an extreme shift in the price and what could have caused it to quickly recover.
People have come up with a range of theories to explain why the stock price suddenly plummeted. Some believe that a technical problem caused the decline, while others think it may have been the result of a planned market manipulation.
Justin Sun from Huobi took to twitter to calm investors/users of the native HT token
” Huobi exchange is #SAFE, the wallets are SAFE, and the backend is SAFE. The recent market fluctuations and the leveraged liquidations were caused by few users triggering a cascade of forced liquidations in the spot and HT contract markets”