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What is the story of the Hobi exchange crisis and the drop in the price of Tron?

وضعیت بحرانی صرافی هوبی و رمزارزهای مرتبط با جاستین سان

According to the Nansen report, approximately 94.2 million dollars have been withdrawn from the Hubei exchange during the last week. The internal conflicts of the Huobi exchange and the dismissal of many employees and rumors of bankruptcy of this exchange have caused its native cryptocurrency (Huobi Token) and other cryptocurrencies related to its owner, Justin Sun (including TRON and USDD) to be in a difficult situation.

According to Mihan Blockchain and quoted by Cointelegraph, Hobby cryptocurrency exchangeDuring the last week, 94.2 million dollars of capital has been withdrawn. Nansen’s report on the status of the Hubei exchange also shows that $60.9 million of this volume of withdrawals was only in the last 24 hours. According to Nansen’s report, most of the said withdrawals were in the form of Tether, USDC and Ether and from wallets with large balances.

A significant increase in the withdrawal of capital from the Hobi exchange Rumors about the dismissal and retrenchment of the employees of this exchange and the disconnection of the internal communications of Hobby employees and the rumor of the bankruptcy of this exchange. It was at the same time.

On January 6, the spokesperson of Sarafi Hobby said that the rumors about the layoff of 40% of the employees are not true. In this regard, he announced that “the planned adjustment includes almost 20% of the employees, but this adjustment has not yet been implemented.” The retrenchment is probably part of Hubei’s restructuring plan after it was bought by Justin Sun. Apparently, there are differences between employees loyal to the founder of the Hubei exchange, Leon Li, and its current owner, Justin Sun, which has led to massive layoffs at the exchange.

In response to the rumors about the economic conditions of the Hubei exchange and the reduction of employees, Justin Sun has claimed that the business of this exchange is in a good condition and the assets of users are completely safe. But as expected, his denial of these rumors could not eliminate the skepticism and concern of many users about the future of this exchange:

The shadow owner of Huobi exchange is Justin Sun. Justin Sun is perhaps the most unusual billionaire in the crypto space. Justin has sent billions of stablecoins to various destinations, including the Binance exchange. It seems that important events are happening. Move all your assets out of centralized exchanges.

In October 2022, Leon Li, the founder and major shareholder of Hobby, sold all his shares in exchange for the purchase of a company related to Justin Sun. After the deal, several key executives immediately left the company. It seems that the departure of these people is related to the actions of changing the structure of this exchange.

These events have caused the remaining components of the Tron ecosystem and the remaining “Sun Coins” to face strong sales pressure. Data from Blockchain Homeland shows that the price of the Tron cryptocurrency has fallen by nearly 8% in the past day to around 5 cents.

Extreme volatility of TRX price
severe fluctuations in the price of Tron in the past days; Source: Trading View

The price of HT, the native token of Hubei exchange, also decreased by 11% in the last day. The spot price of HT at the time of writing is $4.69. The stablecoin USDD, the algorithmic stablecoin of the Tron ecosystem, which was launched shortly after the collapse of Terra, was also de-pegged at the same time as these developments and lost its parity with the US dollar. The price of Tron’s stablecoin, USDD, fell below 96 cents yesterday and is around $0.98 at the time of writing.

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