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The Huobi Token has rapidly fallen by 10%. What’s going on?

Tanja Nechet

News editor

Nov 28, 2022 at 05:50

According to CoinMarketCap, the Huobi Token (HT) has lost the most money in the last 24 hours. The value of coins dropped almost 11% to $6.30. This is quite unexpected, considering that last week the token only grew in price. What happened and what predictions do experts make?

Huobi Token to USD chart (24h). Image: coinmarketcap.com

By the way, Dogecoin (DOGE) is in second place by price loss per day. The price of tokens fell by 10% to $0.09433 in 24 hours.

What is the Huobi Token (HT)?

Huobi Token (HT) is the proprietary token of the China-based cryptocurrency exchange Huobi Global. The token itself is a decentralized digital asset based on the Ethereum blockchain and compatible with ERC-20 (the standard for smart contracts on the Ethereum blockchain). The value of HT depends in part on the reputation of the cryptocurrency exchange Huobi itself, but other factors also have an impact.

Huobi Token was launched in January 2018, after rival cryptocurrency exchange Binance launched a native token.

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The coins allow for lower commissions for trading on the exchange, purchasing VIP status plans, giving the right to vote when decisions are made on the exchange, receiving cryptocurrency rewards for seasonal redemptions, and early access to special events. Tokens can always be exchanged for another cryptocurrency.

What’s going on with the Huobi Token (HT)?

A week earlier, the price of coins was only going up. First on the news of the end of support: Covalent (COVA), CVCOIN (CVNX), Crypto.com (CRO), DigixDAO (DGD), EchoLink (EKO), EdgeSwap (EGS), Themis (GET), Global Social Chain (GSC), NeuroChain Clausius (NCC), Origo. Network (OGO), Odyssey (OCN), Sirin Labs (SRN), Smartshare (SSP), VVS Finance (VVS), WonderHero (WND), and Zenith (ZNT). 

Even earlier, cryptocurrency exchange Huobi conducted an audit of Proof of Reserves, and publicly showed its assets. Thus, the company assured its users of the safety of their funds, after investors began to lose confidence in crypto exchanges due to the fall of FTX.

Huobi Global also announced a rebranding that includes removing the word Global from its name. 

The cryptocurrency exchange has already launched the Huobi Earn program, in which users can earn up to 8% annually by depositing USDT. And it has launched a drawing for a $5,000 prize fund. 

But if everything is so good, why did the price fall sharply from November 27?

First, the cryptocurrency exchange denied a possible merger with Poloniex. Although Tron founder Justin Sun did not rule out such a development in the future, he told The Block.

In addition, Huobi said it plans to move its headquarters from China to the Caribbean as regulators around the world take tougher measures against the crypto industry.

Huobi is also among the top 10 crypto exchanges in terms of daily trading volume. However, it dropped in the ranking after leaving China, where it had many customers. This happened after China, once the largest market, banned cryptocurrency transactions in 2021.

How can I make money on this?

Huobi’s current relative strength index (RSI) is 36. This means that a major price reversal may occur. 

There are signs of a recovery as the HT token moves up to form support at $6.56. Once it gets to that level, it could go as high as $6.7. 

But remember the advice of experienced investors on diversifying investments in cryptocurrency, that is, do not focus solely on one asset.

The InsideBitcoins expert believes that while the price charts are showing positive signs, things could change at any time. 

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