Huobi changes its name to HTX while Justin Sun contemplates purchasing FTX's cryptocurrency holdings.
Cryptocurrency exchange has embarked on a bold marketing journey over the past few days by rebranding itself as "HTX" in celebration of its 10th anniversary. The move has sparked considerable debate and controversy within the cryptocurrency community, drawing comparisons to the defunct exchange FTX, whose founder, Sam Bankman-Fried, is currently facing multiple charges related to fraud.
Huobi’s Rebranding in More Detail
The official announcement of Huobi's rebranding came yesterday, with the company explaining the rationale behind its new identity. According to Huobi, the "H" in "HTX" stands for the first letter of its original name, "Huobi." The "T" symbolizes Justin Sun's blockchain project, Tron, and the "X" represents the exchange itself. However, there are alternative interpretations, with some speculating that "" refers to the exchange's native Huobi Token (HT), while the "X" serves as a Roman numeral for 10, commemorating the exchange's decade of existence. The accompanying slogan for the rebrand is, "HTX, Just Trade It."
Before the official announcement, Huobi began the transition by renaming its social media accounts to reflect the new brand. The exchange's Twitter handle changed to HTX_Global, and its official Telegram group became "HTXglobalofficial."At press time, the website domain still retained the original Huobi name.
The Cryptocurrency Community Takes Notice
The rebranding quickly stirred up discussions on social media platforms, with many expressing concerns about its striking resemblance to FTX, the now-defunct exchange known for its founder's legal issues. Some users on X, formerly known as Twitter, could not help but draw comparisons, with one observer remarking, "What's up with Huobi becoming HTX? I think it’s giving me FTX vibes." Another user voiced confusion, saying, "Is this supposed to be a joke? FTX to HTX? That’s the first thing everyone will think," highlighting the potential pitfalls of adopting a name that resembles a troubled brand like FTX.
It is worth noting that Huobi is not the first entity to adopt a name reminiscent of FTX. In January of this year, the founders of the collapsed cryptocurrency hedge fund Three Arrows Capital announced plans to raise $25 million for a proposed cryptocurrency exchange called GTX. Their explanation for the choice: "because G comes after F," a clever play on words referencing FTX's bankruptcy.
Legal Troubles Possibly the Driving Force Behind the Name Change
Some cryptocurrency observers have speculated that Huobi's rebranding may be an attempt to distance itself from perceived legal troubles, though the nature of these troubles remains unclear. At the beginning of August 2023, Huobi vehemently denied reports suggesting it was on the brink of insolvency and that Chinese authorities had arrested some of its senior executives. Additionally, the exchange faced regulatory challenges earlier in the year when it was ordered to close its operations in Malaysia following enforcement actions by the country's securities regulator in May 2023.
FTX Granted Permission to Liquidate Its Cryptocurrency Holdings
As the cryptocurrency community processes Huobi’s latest name change, the FTX estate has received approval to liquidate its digital assets, valued at a substantial $3.4 billion. During the past 24 hours, Judge John Dorsey granted the motion to sell these assets, effectively overruling two objections in the process.
The assets under consideration encompass a diverse range of cryptocurrencies, illustrating the complexity and diversity of FTX's holdings. The breakdown of these assets includes approximately $1.16 billion worth of SOL (Solana), $560 million in BTC (Bitcoin), $192 million in ETH (Ethereum), $137 million in APT (Aptos Token), $120 million in USDT (Tether), $119 million in XRP (Ripple), $49 million in BIT (BitDao), $46 million in STG (Stargate Finance), $41 million in WBTC (Wrapped Bitcoin), and $37 million in WETH (Wrapped Ethereum). It is a cryptocurrency portfolio of substantial value that has garnered significant attention within the cryptocurrency community.
Interestingly, Bitgo, a reputable name in the cryptocurrency custody and security sector, is overseeing the management of these assets. Discussions have arisen regarding the sale of these assets, with consideration given to not conducting the sale directly on the open market. This approach is likely intended to minimize potential market volatility and ensure the best execution price for the assets.
Notably, in the lead-up to this decision, FTX had announced its efforts to move and bridge tokens back to their original blockchain chains. The exchange stated on social media that it had been actively facilitating the migration of tokens from various blockchains back to their native blockchains. Additionally, FTX had been in the process of transferring SOL and other tokens from existing wallets to Bitgo, which serves as FTX's qualified custodian for these valuable assets.
Mitigating the Risk of a Selloff
The cryptocurrency community has been abuzz with speculation about the sale of these assets. While over-the-counter (OTC) sales have been considered, there is also interest in the possibility of a public purchase. Andrei Grachev, the head of DWF Labs, expressed his company's interest in acquiring these assets, citing the goal of providing creditors with the best execution price while mitigating the risk of causing substantial selling pressure that could adversely impact the overall cryptocurrency market. Such a move could potentially prevent a scenario reminiscent of the market turbulence witnessed in 2020.
TRON’s Founder Considers Scooping up FTX’s Assets
Interestingly, Tron’s founder Justin Sun has also thrown his hat into the ring, stating that he is contemplating making an offer for FTX's holdings of tokens and assets. Sun emphasized the importance of unity in bolstering the cryptocurrency ecosystem, indicating a proactive approach to minimize any adverse impacts from the sale of these substantial digital assets.
Price Overview
Meanwhile, the price of TRX stood at $0.08289 at press time, according to the cryptocurrency price tracking website CoinStats. This was after the altcoin achieved a 24-hour gain of 2.54%. This daily performance added to the cryptocurrency’s positive weekly momentum. Subsequently, TRX’s price was up 5.19% over the past 7 days as well.
Price chart for TRON (Source: CoinStats
Moreover, the altcoin was trading closer to its 24-hour high of $0.082925 than its daily low of $0.080833 at press time. It had also strengthened 0.78% against the market leader Bitcoin (BTC). This resulted in 1 TRX token totalling 0.00000312 BTC.
Technical Overview
Daily chart for TRX/USDT (Source: TradingView
From a technical perspective, TRX’s price had broken out of a multi-week long positive price channel over the past 24 hours. If the altcoin is able to close today’s daily candle above this ascending channel, then it may have the momentum needed to attempt a challenge at the next resistance level at $0.08660 within the coming few days.
However, if TRX’s price corrects back within the price channel prior to the end of today’s trading session, then it may continue to drop to the immediate support level at $0.07960 in the coming 24-48 hours. Thereafter, the cryptocurrency may be at risk of plummeting to the next crucial support level at $0.07185 if sellers continue to exert pressure on the cryptocurrency’s price.
Investors and traders will want to take note of the fact that the 9-day EMA line was positioned above the 20-day EMA line at press time. This suggested that short-term momentum was in favor of buyers. Therefore, TRX’s price may continue to rise in the next couple of days. This bullish thesis will be invalidated if TRX’s price breaks below the 9-day EMA line, which was situated at $0.07989.
Read the full article on Coinpaper.
