Is Tron Founder behind the Recent Takeover of This Chinese Crypto Exchange?

Is Tron Founder behind the Recent Takeover of This Chinese Crypto Exchange?

Huobi Global is one of the largest crypto exchanges in Asia. Lately, the crypto exchange giant announced that they had agreed to be purchased by a Hong-Kong based company, About Capital Management.

Breaking the news via a blog post, Huobi stated that About Capital will "control the majority stake", and that the ownership transfer would have no impact on trading operations.

This news came months after heavy speculation that its founder, Leon Li, was seeking a buyer for his 60% stake in Huobi for a floor price of $1 billion.

However, new reports and speculation have come to light. According to a report released by top journalist Colin Wu, Tron founder Justin Sun and FTX's Sam Bankman-Fried are most likely the investors behind the takeover of Huobi Global.

Details of Wu's Report

Colin Wu's report came less than a few days after Leon Li sold his holdings to About Capital through a buyout vehicle for $1 billion.

Wu cited many sources in his report, claiming that Justin Sun was the core investor in the buyout deal. "Coincidentally," Justin Sun was present at the delivery site on the day the deal was signed.

While Wu claims that Justin Sun was the core buyer, he also claims that Sun was "aided" in the buyout by someone from FTX (possibly Sam Bankman-Fried). Before this, Justin Sun was also believed to have been in talks with several executives at FTX.

In further "coincidences," Huobi Global has formed an advisory board. It has appointed Sun as a member and further reinforces the idea that Sun was indeed an investor in the buyout.

Coupled with this, Bloomberg had also reported two months earlier that both Justin Sun and Sam Bankman-Fried were in contact with Huobi Global's founder, Leon Li, over a potential transfer of assets. However, both of these people have repeatedly denied these claims.

How Is Huobi Global Faring

Overall, the Huobi Token (HT) has reacted well in its price action to the news of the Huobi Global acquisition.

Huobi Global Token (HT) price stats | Source: <a href=''><u>CoinMarketCap</u></a>
Huobi Global Token (HT) price stats | Source: CoinMarketCap

The price of HT has climbed almost 19% over the last day, with a staggering 403.7% spike in trading volume.

Trading volume and market cap spikes on HT | Source: <a href=''><u>CoinMarketCap</u></a>
Trading volume and market cap spikes on HT | Source: CoinMarketCap

Overall, the interest of investors in Huobi and the Huobi Token appears renewed, as its market cap has hit a high of $745 million, with the token having a trading volume of $55.6 million in the last 24 hours.

Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

Related Stories

No stories found.
Voice Of Crypto