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–Huobi Global Sale is expected to be one of the biggest deals in the crypto industry.
-Crypto Billionaire Sam Bankman-Fried and Justin Sun denied second time for their involvement in the Huobi Deal.
-Unknown sources disclosed that Justin Sun majority stake is supported by FTX founder SBF.
Behind the Window Of Opportunity
Huobi Global founder Leon Li has forethought to sell a major portion of stakes of the company. The deal can bring them a profit of a whopping $3 billion.
Huobi Global is one of the world’s largest crypto exchanges. The reports of CoinGecko published that the daily trading volume is above $1 billion. Leon Li wants to sell almost 60% of the firm’s ownership.
According to The Coin Republic,in the previous shareholders meeting of July’s month, ZhenFund and Sequoia China, the beforehand investors of Huobi, were being told previously about the founder’s decision to dilute the holdings. The overall sale can easily achieve $1 billion but Leon’s strives for a total valuation of $2 billion to $3 billion.
In initial conversations and interviews with Justin Sun, founder of Tron, which is one of the world’s largest operating systems along with FTX owner and Crypto Billionaire Sam Bankman-Fried totally disapproved of them being involved in the proceedings.
On 8th october, the fund of About Capital Management has been transferred all the shares of HuobiGlobal that were preferred to be sold. From unacknowledged sources, it is found that Justin Sun is the major investor of this fund.
Moreover, Sun admitted it through posting it on twitter.Justin tweeted- “We have not engaged any matters related to the Blommberg story at this moment.” Also, SBF stated that he neither has any plans to claim stakes in the Huobi. But it is reported that FTX exchange has played a huge part in the event
The Cause
The fall of the crypto market in the recent year has forced many corporations to tighten their hands in aspects of corporate expenses. Huobi Global was one of the prominent crypto trading platforms worldwide.
But after the local authority’s announcement on a major crypto ban in the late September of 2021, Huobi Global was forced to way out from China. Chinese originated Company in 2013, made upto gross 30% of its total trading volumes and revenues. It was the largest user base and also the most income generating location. As a result, Huobi closed all Chinese accounts in Mainland China in late December last year.
Earlier in the crypto crash of this year, Voyager Digital and Celsius Network filed bankruptcy. FTX targeted to buy the firms. But, Sam Bankman-Fried commented via his tweet- “still not involved.” Also, Justin Sun is now one of the Huobi Global’s advisory board members.
On the advent of crypto winter, FTX exchange of SBF has financed Voyager Digital with $200 millon along with helped BlockFi with a revolving credit of over $250 million. Crypto Billionaire stated that they still have “a few billion” in its treasury for helping the financially distressed firms. Since the beginning of this year, SBF has donated at least $34 million to political candidates and other socio-political organizations.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
