The price of Tron (TRX), the 15th largest cryptocurrency by market capitalization, fell on Friday as the overall cryptocurrency market remained stable due to issues related to the cryptocurrency exchange, Huobi.
Justin Sun, the founder of Tron, is a member of Huobi’s advisory board. The exchange announced Friday that it would reduce its staff by 20% and mandate that workers receive their pay in stablecoins. To put an end to a mutiny, it also cut down internal staff communications channels, according to sources on Twitter.
Before the price of TRX began to change, it decreased by almost 8%. TRX is currently trading at $0.053, a decrease of 1.53% over the previous day. As traders rushed into the current volatility to make profits, TRX trading volume also increased by 314% in the past 24 hours.
The USDD stablecoin, which is developed on Tron, lost its intended peg to the US dollar by 3 cents. The USDD stablecoin exchange rate at the time of writing was $0.97. According to DefiLlama data, this price movement led to a 2% decrease in the value locked on Tron-based decentralized applications.
TRON founder and crypto entrepreneur Justin Sun transferred around $100 million worth of stablecoins to cryptocurrency exchange Huobi Global, which has been hammered by a wave of withdrawals, according to a report by Bloomberg.
On Friday, an Ethereum wallet linked to Sun withdrew $50 million of USDT and $50 million of USDC from the Binance exchange and moved the tokens to Huobi around three hours later, according to blockchain research firm Nansen. “It just shows the confidence in Huobi Exchange,” Sun said of the move in a Telegram message. “It’s just my personal funds.”
The transactions took place amid increased pressure on Singapore-based Huobi, which, according to statistics from Coinglass, had nearly $85 million in cryptocurrency outflows in 24 hours. The exchange announced on Friday that it would now operate with a “very lean team” as the crypto market downturn entered its second year.
According to a November Bloomberg News report, Sun invested nearly $1 billion to acquire a roughly 60% stake in Huobi. Moving stablecoins to Huobi “could be to help with the higher withdrawals or preserve a level of confidence in the exchange,” Lee, a Nansen data journalist, suggested in a tweet on Friday.
Another development is the closure of the wealth management section by cryptocurrency behemoth Digital Currency Group, the latest indication of difficulties amid a severe and protracted downturn in the cryptocurrency market.
The Stamford, Connecticut-based company, which also owns brokerage Genesis and asset management firm Grayscale Investments, is coping with some problems after letting go of 10% of its workforce at the end of the previous year. Additionally, Genesis cut more than 60 roles or 30% of its workforce.
After the abrupt failure of FTX, one of the biggest cryptocurrency exchanges in the world, around the end of 2022, the business led by Barry Silbert is coping with changes and difficulties among some of its main subsidiaries.
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