According to reports, Leon Li, the creator of the significant cryptocurrency exchange Huobi Global, has started preliminary discussions with Justin Sun, the inventor of FTX and TRON, to sell his majority ownership in the exchange.
According to reports, Huobi founder Leon Li is discussing with many investors, including rival exchange FTX and TRON creator Justin Sun, to sell 60% of the exchange for $3 billion. Reportedly, Huobi founder Leon Li is discussing with investors selling around 60 percent of the exchange.
Bloomberg reported on Friday that the creator of one of the world’s biggest cryptocurrency exchanges, Huobi Global, had discussions with numerous investors, including rival cryptocurrency exchange FTX and TRON inventor Justin Sun, to sell controlling ownership in the firm. Bloomberg reported, citing sources with knowledge of the situation, that Li was seeking a value between $2 billion and $3 billion, resulting in a personal profit of around $1 billion. Upon completion, the transaction might represent one of the most significant purchases in the crypto business.
Huobi, located in Seychelles, was China’s largest cryptocurrency exchange before the country’s ban on cryptocurrencies last year. Despite suffering a considerable income loss due to the prohibition, the exchange has maintained its position as one of the biggest in the market, with a daily trading volume of over $1.1 billion. Over half of Coinbase’s daily trading volume is now valued at around $19 billion.
A Huobi representative confirmed to Bloomberg that Li had arranged the sale with many institutional investors. “He thinks that the new owners will be more powerful and resourceful, will cherish the Huobi brand, and will devote more cash and effort to drive Huobi’s development,” they said. Despite conflicting rumours, TRON inventor Justin Sun has denied ever discussing the sale with Li.
In response to the announcement, the price of Huobi’s token HT rose around 25%, from $4.48 to $5.46, before reversing its gains. According to CoinGecko statistics, the current price of HT is about $5.30, which is approximately 86.7% less than its all-time high price of $39.66 in May 2021.