Huobi Global announced the change in controlling ownership in an official blog post on October 8 as part of an agreement between Huobi founder Leon Li and About Capital Management.
Its founder, Leon Li, has sold his entire controlling stake to About Capital Management of Hong Kong.
According to Huobi, About Capital Management's buyout vehicle will be the controlling stakeholder. Furthermore, the change in holding ownership has no effect on Huobi's core operations or business management teams.
As a result of the news, the Huobi Token (HT) price increased by more than 5% to a high of $4.50. The trading volume also increased dramatically with the change in ownership.
Huobi Global's Founder Sells Majority Stake
Huobi Global announced the change in controlling ownership in an official blog post on October 8 as part of an agreement between Huobi founder Leon Li and About Capital Management. However, the cryptocurrency exchange acknowledged that there was no impact on Huobi's core functioning or business management personnel.
Furthermore, when the deal gets completed, Leon Li will no longer be involved in Huobi Global's operations or other decisions.
About Capital aims to launch a series of new worldwide brand marketing and commercial growth activities for Huobi Global. It comprises a world-class global strategic advisory board, capital injections into margin and risk provision funds, and competitiveness tactics.
Furthermore, About Capital believes that the crypto exchange will be better positioned to provide first-class trading and services to foreign investors. In reality, Huobi was the second largest cryptocurrency exchange after Binance. However, the situation has faded as a result of China's crypto crackdown.
On December 31 of 2021, Huobi completely left China. The crypto exchange terminated all accounts of users from mainland China.
Previously, FTX, Tron's founder Justin Sun, and Binance expressed interest in purchasing Huobi Global. Leon Li was apparently looking to sell his 60% stake for about $3 billion. It implies that the transaction with About Capital is worth at least $1 billion.
HT Token Price Soars Over 5%
Huobi Token (HT) prices increased by more than 5% following the shift in Huobi's controlling ownership. The trade volume jumped by about 70% as well. The price is currently at $4.29, up more than 3% in the last 24 hours.
Huobi Token's 24-hour low and high are $4.15 and $4.50, respectively. The HT token price has plummeted due to regulatory and operational pressures.
Huobi has operations in over 100 countries, including the United States, Canada, South Korea, Japan, Hong Kong, the United Arab Emirates, and New Zealand.
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