Wallet associated with Justin Sun moves $100 million to Huobi

Quick Take

  • A wallet associated with Tron founder Justin Sun moved $100 million of stablecoins to crypto exchange Huobi.
  • Following the move, a large buy wall appeared on huobi token.

A wallet associated with Tron founder Justin Sun moved $100 million of stablecoins to crypto exchange Huobi. Two transactions took place at 11:10 a.m. UTC, moving $50 million each of USDC and USDT, as noted by security analysts PeckShield.

The wallet is associated with Sun on Ethereum block explorer Etherscan, meaning that the company running the explorer has on-chain reasoning to presume that he owns it. It also contains $16.5 million of decentralized usd (USDD), a collateralized stablecoin that Sun is closely associated with. At one point in its history, it contained $2.5 billion of ether.

One observer noticed that most of the funds originated from Just Lend, a lending platform on Tron, and were sent through Binance to the wallet, before they went to Huobi.

This comes at a time when Huobi is under close scrutiny. Sun reportedly acquired the exchange through an intermediary company, which he denies, maintaining that he is merely an adviser. Regardless, since then there have been big changes in the company, including layoffs and a mandate that employees are paid in stablecoins instead of fiat currency.

These changes, plus rumors that internal communications may have been closed, led to a drop in the price of huobi token (HT). It fell to a low of $4.30 from $5.20 over the last 48 hours. The token has since rebounded, rising to $4.80.

Huobi Global Head of Sales James Hume said in a LinkedIn post that "most if not all" of the rumors circulating were either "totally false or inaccurate."

 "Our internal communications platform is not down and its business as usual apart from a few layoffs," he wrote.

Following the transactions to Huobi, some exchange users noticed a $1 million buy wall for the token had been created. This means that a trader was willing to buy a million dollars worth of huobi token at a specific price — something that would diminish chances of the token falling below that value.

(Updates with comment from Huobi Global Head of Sales James Hume in 6th paragraph.)

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