Fund was created in response to a rapid drop and then rebound of the HT Token.

Huobi now has a $100 million liquidity fund to protect against precipitous drops of the HT token, in response to what happened late Thursday U.S. time.

Sun confirmed a transfer of $100 million in USDC to Huobi just after 04:25 UTC, or 11:27 AM Hong Kong time.

The rapid drop and then rebound was caused by “leveraged liquidation on the market caused by a few users,” according to a tweet by Sun. This comes amid a broader crypto market correction as $307 million in positions across the market were liquidated as traders digest the impact of Silvergate’s exit from banking crypto companies.

“We will continue to improve the liquidity depth of main cryptocurrencies and HT token, strengthen leverage risk warnings and liquidity capabilities,” Sun tweeted.

Sun has previously disclosed that he’s a major holder of HT.

HT dropped from a 24-hour-high of $4.81 to a low of $0.31 at 21:00 UTC on Huobi’s exchange, according to data from TradingView.

In October, HT rallied nearly 75% as Sun said “revitalizing Huobi is to empower HT” and promised “there will be many big moves around HT, including brand upgrade, heavy empowerment, and business cooperation.”

HT is currently trading at $3.90, according to CoinGecko.
Earlier, a tweet from Nansen.ai had flagged that Sun was moving $60 million in USDT, though the ultimate destination of that was Aave, and this was unrelated to the Huobi liquidity fund.

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Justin Sun deposits $100 million into Binance as outflow hits $1.8 billion, while BNB drops 8% and value departs BSC-based DeFi protocols

A general sense of unease about the health of Binance continued through the market during the Asian trading hours on Tuesday.

Part of the market’s anxiety over Binance likely came from reports that Tron’s Justin Sun withdrew a combined $50 million from Binance. Sun, however, looked to calm market fears by tweeting a link to Etherscan, showing that he had deposited $100 million USDC back into the exchange.

On-chain data shows withdrawals across all chains hit the $1.8 billion mark during the last 24 hours. Data from Nansen shows that Paxos and Huobi were the recipients of some of this inflow, with around $162 million of netflow between the two exchanges.

Coinbase saw a sharp rise in inflow, specifically during the Asian trading hours, with around $124 million coming into the exchange during the day.

Binance’s exchange token, BNB, often seen as a barometer of the fortune of the exchange, is down 8% on-day to $259, according to CoinGecko.

Data from DeFiLlama shows that the total value locked in Binance Service Chain (BSC) DeFi protocols is down 4.5% during the past 24 hours.

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Binance announced it would not acquire FTX earlier Wednesday.

Justin Sun, the founder of the Tron cryptocurrency network and Grenada’s ambassador to the World Trade Organization, tweeted late Wednesday that he and his team were “putting together a solution” with beleaguered cryptocurrency exchange FTX, hours after Binance announced it would not move forward in a deal to acquire the company.

Sun provided no details, only saying that his team “has been working around the clock to avoid further deterioration.” Sam Bankman-Fried, the CEO of FTX, retweeted Sun’s tweet.

Sun’s tweet did not make clear whether this solution would rescue FTX as an entity or only backstop the Tron-related tokens held on the exchange.

FTX stunned the crypto industry on Tuesday when founder Bankman-Fried announced that it was facing liquidity issues only days after tweeting that the exchange was “fine.” At the time, Bankman-Fried said he had come to an agreement to conduct a transaction with Changpeng “CZ” Zhao, the founder of Binance. CZ later clarified it was a nonbinding letter of intent to acquire FTX.

Binance backed away from the deal earlier on Wednesday, saying that after looking at FTX’s books, “the issues are beyond our control or ability to help.”

Questions arose about FTX sister company Alameda Research’s solvency after CoinDesk published a report on its balance sheet, finding that a hefty chunk of Alameda Research’s assets were composed of the FTT token, an exchange token issued by FTX. Bankman-Fried and other FTX and Alameda executives sought to downplay the concerns over the next week, before Bankman-Fried’s surprise announcement.

As a result of the scuttled Binance agreement announcement, numerous regulatory agencies have hinted that they are investigating or broadening investigations into the company, including the U.S. Department of Justice, the Securities and Exchange Commission and the Commodity Futures Trading Commission. These agencies are looking at how FTX handled client funds, among other concerns, according to reports from Bloomberg and The Wall Street Journal.

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