Altcoin
TRX, HT could struggle if Justin Sun’s rumored sale goes through, here’s why
Posted:
Journalist
- Emerging reports show that Justin Sun could be ready to sell the Huobi exchange.
- TRX remains unaffected by the development, but HT might face severe withdrawals.
As per a new Bloomberg report, Tron [TRX] founder Justin Sun could be on the verge of selling his stake at Huobi Global, the Singapore-headquartered exchange. Sun, who only joined the Huobi team last year to help restore the global image of the platform, faced troubles ever since.
Realistic or not, here’s HT’s market cap in TRX’s terms
At one point, the exchange had to lay off staff. And several times, Huobi Token [HT] faced high sell pressure as the exchange outflow reached considerable highs.
The ever-present salesman in TRX and HT
However, Bloomberg noted that the deal was still in its early stages as Sun had only reached out to a potential investor over the last few weeks. Sun remains one of the largest shareholders in the company. But the crypto coverage section of the news platform noted that the valuation remained unclear.
Interestingly, the development has had little to no effect on the TRX and HT prices. According to CoinMarketCap, HT grew 0.15% while TRX’s value increased by 0.21% one hour after the public revelation. If, however, the deal goes through, both tokens may be glaringly affected.
On gauging the social volume, Santiment showed that TRX spiked in this regard. Social volume is built on top activities from crypto-related channels, measuring merging trends, and evaluating crowd behavior.
With the metric rise to 25, it implied that TRX formed a significant part of the discussion around market-based forums. However, HT was on the antagonistic part, signaling deprived attention toward the token.
Source: Santiment
But in a case where the speculation becomes accurate, HT could experience a sharp increase in social volume. And a possible drive might not be in holders’ favor, as negative sentiment could thrive as a result of the potential sale.
Tron development underway but HT is down
However, Tron might isolate itself from such an occurrence. The operations of both projects are not intertwined. In fact, developers operating under the Tron blockchain seem to have increased their output.
At the time of writing, Santiment confirmed the progress as Tron’s development activity rose to 2.36. But for HT, the impact could be severe, especially with the Market Value to Realized Value (MVRV) state.
Read Tron’s [TRX] Price Prediction 2023-2024
At press time, the 30-day MVRV ratio of the token was down to -6.084%. This means that many of the token holders have only endured losses in the last month.
Source: Santiment
In the interim, Justin Sun has been involved in the sale of a lot of tokens. Recently, he received a share of the Arbitrum [ARB] AirDrop and transferred to Huobi. A possible result of this sort of action could be a bid to sell.
Justin Sun received an #Airdrop of 5,250 $ARB($6,981) and transferred to #Huobi.https://t.co/JzTZpBh2YO pic.twitter.com/DZZRKP5jWy
— Lookonchain (@lookonchain) March 26, 2023
