Huobi Token sees massive price swings as founder Leon Li’s brother cashes out millions of HT tokens


  • Huobi token price nosedived by nearly 8% within hours as chat records of the exchange’s founder cashing out HT tokens were circulated in the community. 
  • Huobi founder Li Lin’s brother Wei holds 167,279.98 HT, worth $468,000 at press time. 
  • Justin Sun commented on the controversial sale of HT and assured the community an equivalent number of tokens will be destroyed.

Huobi Token witnessed volatility in its prices as the exchange’s founder Li Lin’s brother dumped his Huobi Token (HT) holdings on the platform. Chat records about Li Wei’s sale of HT tokens were circulated in the community, fueling uncertainty among traders. 

Justin Sun addressed the issue and assured HT holders that the volume of Huobi Token sold by Wei will be destroyed from supply to restore the value of the exchange token. 

Also read: Ethereum researcher proposes MEV burn to protect ETH blockchain from manipulation

Huobi Token price fluctuates with Wei’s HT token dump

Huobi Token price witnessed massive swings, dropping 8% within a few hours on Tuesday as large volumes of HT were dumped on an exchange platform. Colin Wu, a Chinese reporter, investigated the cause of the volatility and learned that chat records of Huobi founder Li Lin’s brother Wei selling his HT holdings on the exchange were being circulated in the community. 

Founder Li Lin’s brother reportedly holds 167,279.98 HT in his wallet on the Huobi exchange and his account has been reportedly frozen. Justin Sun, a Huobi stakeholder addressed the issue for the community in a recent tweet. 

Sun explained that Li Wei had acquired HT tokens at zero cost through abnormal means. Wei sold the tokens on Huobi exchange in several batches and withdrew cash in exchange. Sun acknowledged that these actions were against the interest of users and the HT holder community and informed that the Huobi Global Advisory Committee and the HT DAO community decided to recover and destroy the HT obtained by Li Wei for free. 

The HT destruction will be announced in the HT community and Wei’s actions have been criticized by the platform and its management. 

Huobi Token price swings

Huobi Token is in a downward trend, with HT tackling resistance at the 10-day Exponential Moving Average (EMA) at $2.9571. The exchange token witnessed an 11.8% price swing from $2.69 to $3.01, recovering in response to Justin Sun’s tweet. 

HT could face immediate resistances at the 50- and 200-day EMAs at $3.4631 and $4.6108. In the event of a definitive close above the trendline, HT could break out of its downward trend. 

HT one-day price chart

HT one-day price chart

In the event of a price decline, HT price could nosedive to the weekly low at $2.6858. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin is showing rising correlation with the S&P 500

Bitcoin is showing rising correlation with the S&P 500

Bitcoin and the crypto market have been in an uptrend since Wednesday following the Federal Reserve's decision to cut interest rates by 50 basis points. Bitcoin is up nearly 3% in the past 24 hours, rising briefly above the $63,000 level for the first time in three weeks.

More Bitcoin News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

More Ethereum News
Consensys case against SEC over Ethereum dismissed by Texas court

Consensys case against SEC over Ethereum dismissed by Texas court

Consensys announced dismissal of a case it filed against the SEC in April about the agency's alleged actions against Ethereum. Judge Reed O'Connor of the Northern District of Texas dismissed the case on Thursday. Consensys claims that the court failed to examine the "merits" of its claim against the SEC.

More Cryptocurrencies News
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors. 

More Ripple News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP