Tron (TRX) drops 8% ── Following the turmoil of Huobi, where Mr. Sun is an advisor | coindesk JAPAN | Coindesk Japan

On January 6, 2023, the price of Tron (TRX), the 18th largest token by market capitalization, is driven by Huobi despite the overall cryptocurrency market performing well. In the midst of the tension, it plummeted.

Cryptocurrency exchange Huobi, advised by Tron founder Justin Sun, will cut its workforce by 20% and pay its employees in stablecoins on Jan. 6. announced that it would ask for It has also reportedly closed communication channels for internal staff to curb backlash.

TRX has fallen nearly 8% over the past 24 hours. The price is currently above the support level of 5 cents, but below it, a drop to 3 cents is possible.

Decentralized USD (USDD), a Tron-based stablecoin, dropped 3 cents, effectively losing its peg to the US dollar. These price movements caused a 2% drop in value locked in Tron-based decentralized applications, according to data from DeFiLlama.

As a result, TRX futures had less than $1 million in liquidation on exchanges, suggesting that selling was mostly spot. Spot refers to the actual token, while futures are derivatives that allow traders to bet on changes in the price of the token.

Meanwhile, blockchain security firm Peckshield said on Twitter that more than $50 million of cryptocurrency wallet addresses associated with Sun had been moved to Binance.

The asset move comes amid a flurry of speculation among Twitter users about the health of Huobi and the safety of its customer funds. Data from analytics firm Nansen shows Huobi has seen an outflow of about $60 million in the past 24 hours.

Sun, Tron and Huobi did not respond to CoinDesk’s requests for comment.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
| Image: Danny Nelson/CoinDesk
｜Original: Tron Price Sinks 8%, USDD Depegs Amid Drama at Justin Sun-Related Huobi Crypto Exchange