Tron’s founder, Justin Sun, has dismissed rumors suggesting that Huobi, one of the leading cryptocurrency exchanges, is facing insolvency. Speculation arose after reports emerged about the alleged detention of some Huobi executives. However, Sun urged people to ignore these rumors, stating that both Tron and Huobi will thrive in the future through continuous development.
Over the weekend, Huobi experienced a significant outflow of $64 million, contributing to a decline in its total value locked (TVL). Currently, the TVL stands at approximately $2.5 billion, a 20% drop compared to July’s figure of $3.13 billion. Bitcoin makes up about a third of the TVL, while Tron’s native token (TRX) and Huobi Token (HT) account for 26.5% and 20.3% respectively.
The rumors surrounding Huobi’s liquidity issues and potential arrests of its executives triggered volatility in the price of HT. However, Sun labeled the situation as “FUD” (Fear, Uncertainty, and Doubt) and expressed confidence in the future success of both Tron and Huobi.
In response to Sun’s tweet, many users on Twitter commented with the number “4,” a symbol popularized by Binance’s CEO Changpeng Zhao to indicate that certain reports are false. Sun’s message of perseverance and trust in the vision and community efforts of Tron and Huobi resonated with his followers.
Despite the recent challenges faced by Huobi, Sun’s reassurance and optimistic outlook suggest that the exchange will overcome these hurdles and continue to thrive in the evolving crypto market.