HUSD loses $1 as Tron’s Justin Sun takes over Huobi Global
A few days after Huobi Global announcement the delisting of HUSD from its platform, the stablecoin saw a drop in price, causing its parity to drop significantly by $1.
HUSD is up 23% in one day
Data from CoinMarketCap revealed that the stablecoin has fallen more than 20% in the past 24 hours. At the time of writing, it was trading at $0.593, well below the $1 it is supposed to hold. The market capitalization of HUSD naturally fell by 24% as well.
The 627% rise in the stablecoin’s daily trading volume seems to indicate that traders are exploiting this price action to take profits by most likely selling the HUSD.
The decision to delist HUSD is largely responsible for the stablecoin’s price drop dramatically. The process began on October 28 and will see all HUSD balance on Huobi Global converted to USDT. The process is expected to continue until November 4. Ergo, a further drop in the price of the stablecoin is likely.
Covered by Justin Sun?
News of the delisting comes amid reports of a takeover by Justin Sun, the founder of TRON, who is also on Huobi Global’s global advisory board.
Colin Wu recently reported that key executives of Huobi Global, including the CEO and CFO, have resigned from the exchange. In what appears to be a major shake-up in the management of the exchange, members of Justin Sun’s TRON team have reportedly taken over major departments of the company. Sun also hinted at large-scale layoffs in the stock market.
Justin Sun took to Twitter earlier today to respond to reports of personnel changes at Huobi Global. He tweeted,
“New Huobi naturally comes with new people and a new atmosphere. We are extremely cautious about the future arrangements of New Huobi staff. Central to the future growth of Coin, and listen widely to opinions inside and outside Huobi, especially Huobi people who have a say in the actual situation of each position.
In the same Twitter thread, Sun outlined his vision for Huobi’s role in China’s web3 industry. The head of TRON has pledged to reorganize the exchange’s operations with the aim of promoting China’s web3 industry internationally. Sun compared Huobi’s future status to that of China’s “Whampoa Military Academy”.