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In an interview with Crypto Insider, Justin Sun discussed the recent controversies surrounding his ownership of Huobi tokens. The Tron CEO explained why he had bought these tokens and why this was not a conflict of interest. In the same interview, he also spoke about whether or not Tron would have its token upgrade in the future. You may know Justin from his role as CEO at Tron or his other company: Ripple partner, PeiWen Capital. Most recently, you may have heard that he owns a large quantity of Huobi Tokens. Let’s look at how it affects Sun and his companies moving forward.
What are Huobi Tokens?
Huobi Tokens, or HTs, are ERC-20 tokens issued by the Huobi exchange. They are used to increase user engagement, enabling users to earn tokens by participating in the community. A percentage of revenue is also distributed to HT holders. They can be traded on Huobi’s exchange, where users can trade Bitcoin, Ethereum, and USDT for HT. Huobi Tokens are also used to vote for who will be listed on the exchange, meaning that owning HT gives you control over which currencies are listed and which are not. This has resulted in a lot of controversy regarding whether or not Justin Sun’s ownership of these tokens constitutes a conflict of interest for his other companies.
Why did Justin buy these tokens?
Justin Sun has said that he has bought these tokens to ensure a closer relationship between Tron and Huobi. While he originally planned to use Tron’s token to pay for a listing fee and then trade it for Huobi Tokens, he did not want to do so without having an established relationship with the exchange. By buying Huobi Tokens, he was able to ensure a relationship between the two parties while ensuring that he would be able to trade the tokens back for TRX as soon as they hit the exchange. Some have also interpreted this purchase as a strategic investment because the tokens are locked up for 12 months and cannot be used to vote until then.
Original source to learn more: https://www.crunchbase.com/person/justin-sun-cbba