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The Huobi token spiked to a four-month high of $7.54 earlier.
The native coin of the Chinese crypto exchange Huobi Global – Huobi Token (HT), has been experiencing nothing short of an impressive change of fortune in the past few days. This was despite being at a 21-month low just about a week ago.
Since Monday, however, the token’s price has been rallying, gaining over 70% in the process. According to CoinMarketCap data, HT spiked to a 4-month high of $7.54 early on Thursday morning.
What’s Causing Huobi Token to Rally?
The performance of the Huobi token in the last seven days is particularly impressive. This is considering that there’s broader market inactivity and a not-so-good economic condition in play. But there are a few factors contributing to the price spike that saw Huobi token surpass $1 billion market capitalization in seven days.
As earlier reported, a series of changes are happening within the Huobi management, which saw some industry leaders take up advisory roles at Huobi Global. One of the new members of the global advisory board is Tron’s founder Justin Sun.
The news of the shake-up immediately caused the price of the Huobi token to jump in excitement. However, Sun’s commentary after the announcement may have caused the price explosion that followed. Sun tweeted in part:
“In the future, there will be many big moves around HT, including brand upgrade, heavy empowerment, and business cooperation.”
Other than the appointments and the encouraging words from Sun, there is also news of a freshly-injected capital into Huobi.
Hong Kong-based About Capital Management recently acquired the Chinese exchange and promised more investments as time goes on. In fact, rumors soon emerged that Justin Sun was probably using About Capital as a front to take charge of the exchange. However, he has since denied those claims.
Founded in 2013, Huobi’s woes began in 2021 following China’s ban on cryptocurrencies. The exchange lost several users as a result of the China ban, translating to a loss of revenue for the firm. At a point, it even considered cutting down nearly 30% of its staff to keep its business afloat.
Since the acquisition, however, everything seems to now be going on just fine for Huobi as it continues to plan its global expansion.