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TRX, HT could struggle if Justin Sun’s rumored sale goes through, here’s why

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TRX, HT could struggle if Justin Sun's rumored sale goes through, here's why

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  • 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.

Tron and Huobi Token social volume

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.

Tron development activity and Huobi Token MVRV ratio

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.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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