One of the biggest cryptocurrency exchanges in the world, Binance, reportedly declined to invest in Huobi, another significant player in the market. The report says that the news affected the market hence, leading to the prices of TRX and Huobi Tokens dropping in less than 24 hours.
Although Binance has not made an official statement regarding the situation, further investigation into the development reveals that Justin Sun, the creator of Tron and a major Huobi stakeholder, denied making any such offer to Changpeng Zhao, the CEO of Binance, on Twitter. According to correspondence, Zhao and his company were directly pitched the sale by Sun, but it seems that Binance was not keen on buying a stake in Huobi.
Few days after Bloomberg reported on the 1st of April that Sun had started negotiations to sell a share in Huobi, news of the alleged selling bid to Binance surfaced. As it stands, it is still unclear whether the allegations were part of these discussions, or an entirely different case.
The cryptocurrency market is notorious for its turbulence, and news of important actions by market players can have a big effect on pricing. Following the publication of the CoinDesk piece, TRX and Huobi Token both hit day lows, indicating that investors are paying close attention to these trends.
The Future Of Huobi Considering The Latest Development
This development has raised a lot of concerns among the Huobi shareholders, as well as the future of the company. Analysts think that the idea of Huobi’s CEO pitching to sell the company’s shares to Binance may be linked to some financial or strategic reasons. And the fact that he (the CEO), is said to have contacted Binance as well as other potential buyers indicates that he is actively considering his choices.
Other experts explained that there will probably be further consolidation and strategic alliances between the big market players as the Bitcoin business develops and matures. Whether Sun is successful in selling his interest in Huobi or not, it is obvious that he is trying to make decisions that will set him and his businesses up for success in the future.
