On October 10, Justin Sun, the founder of Tron, revealed his new role of global advisor with the crypto exchange, Huobi Global via tweet. The news was revealed just one week after Huobi Global disclosed a change in the ownership structure. However, Justin has denied the purchase of the firm.
As per the report, Huobi founder Leon Li was seeking to offload his majority shareholding for more than $1 billion, valuing the exchange at $3 billion.
The largest stakeholder of Huobi, Li, has negotiated a deal to sell all of his stake with the Hong Kong-based investment company About Capital Management.
The majority ownership in Huobi Global will be in the hands of About Capital’s purchase vehicle. It’s interesting to note that Justin Sun was the main investor of M & A fund.
The action suggested that Sun was the true buyer of the share, which is said to be worth $1 billion, as first revealed by Chinese crypto journalist Colin Wu. The controversial executive, though, asserted that the claim is “false.”
Sun confirmed his role as Global Advisory via a tweet saying, “I’m extremely honored to be selected as an individual from the Global Advisory board of Huobi Global and work with industry, scholastic, and strategy pioneers to help guide and develop this creative, energetic, and versatile organisation in its most recent part of worldwide expansion. Full sail ahead.”
The creator of Tron has not denied his role with About Capital. The terms of the agreement have been made public by Huobi.
After the purchase of the majority stake, Huobi established a global advisory board of five people, including its co-founder Du Jun, Leah Wald, CEO of Valkyrie Investment, Ted Chen, founder of About Capital, Wang Yang, vice president of the Hong Kong University of Science and Technology and Justin Sun of Tron. The board is responsible for directing the exchange’s international expansion.
Sam Bankman-Fried, the founder of FTX, was anticipated to have invested in Huobi alongside Sun. Nonetheless, in his most recent tweet, the executive denied any involvement, stating: “Still not engaged.”
Huobi intends to implement a number of new worldwide brand promotion and commercial expansion strategies after the deal. The creation of the international strategic advisory council is also included in the strategies.
The cryptocurrency exchange will continue to “inject sufficient funds in margin and risk provision funds.” in the future. Increasing competitiveness will also be a major area of focus.
Huobi Global, which was established in 2013, fueled China’s cryptocurrency boom before authorities made all cryptocurrency transactions illegal in 2021. Huobi left the domestic market to comply with Beijing.
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