Justin Sun, the renowned CEO of Tron (TRX) and a significant stakeholder in Huobi, has publicly alleged Li Wei, brother to Huobi founder Li Lin, of unethically acquiring and disposing of Huobi’s native token, HT. Furthermore, Sun claims that Li Wei irregularly obtained the HT tokens at no cost, converting them into immense wealth.
A Dramatic Dive in Huobi Token Value
The ripple effects of these allegations have been felt in the market, with the value of the HT token plunging 43% within seven days. Nonetheless, a slight recovery of 3.16% was noted following Sun’s social media revelations.
Sun expressed that Li Wei was the beneficiary of millions of HT tokens at zero cost during the initial token distribution phase. This disclosure has raised eyebrows and led to further scrutiny.
In addition, Sun highlighted the ongoing action of Li Wei consistently liquidating these HT tokens. Doing so created a significant cash inflow for himself. This action has precipitated a response from the HT DAO committee, now stepping in to rectify the matter.
Next Steps: Negotiations and Token Destruction
Sun elucidated his intent to negotiate with Li Wei to secure a refund and orchestrate obliterating his remaining Huobi Token balance. This strategy is seen as restoring balance and justice in the community.
In addition, Sun levied criticism at Li Wei for his lack of contributions to the HT community. He emphasized his belief in the principle of rewarding individuals who genuinely contribute to the growth and development of the HT DAO.
The Current State of HT
After this controversy, the HT token is trading at a humble $2.80, with a market capitalization of $450 million. This is a far cry from its all-time high of $33.28, achieved in May 2021. Such a trend is common among exchange tokens.
The accusations lodged by Justin Sun against Li Wei continue to stir debate in the cryptocurrency industry. As the events capture global attention, stakeholders and observers eagerly await this controversy’s resolution.
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