Huobi Token (HT) appears to be in a vulnerable state as it continues to deal with the drama unfolding at cryptocurrency exchange Huobi.
While the crypto has increased its trading price by 3.2% in the last 24 hours to trade at $4.72 at the time of writing this according to tracking from Coingeckodigital assets continue to struggle to regain some of the new looses.
During the previous seven and 14 days, HT has shed 6.4% and 11.3% of its value, and is on the verge of another crisis as suggested by some technical indicators.
The altcoin is finally in an oversold position, making it more vulnerable to a significant price drop that could occur over the next few days.
As Huobi Notches Massive Outflow, HT suffers
DeFiLlama, a decentralized financial data aggregator, recently shared on Twitter that the Huobi exchange experienced a large capital outflow in the last 24 hours amounting to more than $75 million.
Information provider noted that by December 15, 2022, the company will have a capital flow of more than $87 million.
However, the exchange failed to maintain this kind of performance and ended up losing more than $204 million, including $75 million recorded in the previous 24 hours.
One of the potential reasons for this significant decline that definitely affected Huobi Token is the fact that there are rumors circulating about the company struggling with its financial operations.
For one thing, there are unconfirmed reports that some of the company’s executives are forcing some of their employees to pay them in cryptocurrencies.
HT total market cap at $720 million on the daily chart | Chart: TradingView.com
In addition, Reuters reported that Huobi will cut 20% of its workforce. According to the statement of the company director and founder of TRON Justin Sun, the company is undergoing a structural adjustment.
After a difficult 2022, during which several large companies rose and the value of tokens like bitcoin fell, Huobi is the third major crypto company in as many days to announce a head cut.
On Thursday, Silvergate, a U.S. bank focused on cryptocurrency, announced it would lay off about 40% of its personnel, while digital asset lender Genesis announced it would fire 30%.
Sun Defends Huobi, Calls Rumors FUD
In regards to the above caseSun – which only became part of Huobi last year – expressed the volatility and uncertainty known in the crypto space.
He said:
“It’s important to recognize that the crypto world can be volatile and uncertain. There will always be ups and downs, and it’s easy to get caught up in the fear, uncertainty, and doubt (FUD) that can happen.
Sun also added that the company is doing its best not to let this “disruption” get in the way of attending to the needs and requests of users.
-Featured image: Kiddco Plumbing