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.
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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.
When HT was initially distributed, Li Wei, Leon Li's brother, received millions of HT tokens for free. Li Wei has been consistently selling off these HT tokens and cashing out. Now, the HT DAO committee is stepping in to rectify this issue.
— H.E. Justin Sun 孙宇晨 (@justinsuntron) May 16, 2023
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
In the event of a price decline, HT price could nosedive to the weekly low at $2.6858.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
