In mid-2022, Huobi founder Leon Li expressed his intention to sell more than 50% of the company due to the market downturn and the regulatory landscape. Later that year, Li sold his controlling stake to a “buyout firm,” sparking rumors that TRON founder Justin Sun was behind the acquisition. However, Sun denied these rumors, claiming that his role in the company was that of an advisor.
A Potential Merger with Poloniex
Sun went on to represent Huobi in a high-level capacity, announcing the potential merger of Huobi and Poloniex in November 2022. By the end of the month, Huobi announced a strategic partnership with Poloniex, and ChainCatcher later reported that a merger of both companies would occur, with Poloniex integrating into Huobi’s operations.
Binance as an Essential Partner
In a recent interview with the Empire YouTube channel, Sun discussed TRON’s vision, yield farming, and Huobi’s competition with Binance. However, Sun emphasized the importance of partnership with Binance, stating that there is room for many exchanges to operate successfully. While Binance accounts for a significant portion of the market, Sun believes that the crypto exchange market will diversify in the long term. He pointed out that the token market is highly changeable, unlike the legacy stock market, and that there is scope for different exchanges to ride these trends. Sun also stated that Huobi collaborates extensively with Binance and views them as one of their most important partners rather than a competitor.
In summary, Justin Sun acquired a controlling stake in Huobi, and there were rumors that he spent $1 billion on the acquisition. However, Sun denied these rumors and stated that his role in the company was that of an advisor. He also represented Huobi in a high-level capacity, announcing the potential merger of Huobi and Poloniex in November 2022. Sun emphasized the importance of partnership with Binance, stating that there is room for many exchanges to operate successfully and that Huobi collaborates extensively with Binance.