According to the Chinese journalist Colin Wu, otherwise known as “Wu Blockchain,” the cryptocurrency company Huobi may lay off 30% of the firm’s staff due to “a sharp drop in revenue.” Furthermore, the reporter claims that Huobi’s co-founder Leon Li is reportedly looking to sell a large stake in the digital assets company.
Colin Wu reports on Layoffs Coming to Huobi, and an Allegated Sale of Half-Off Stakes
As companies such as Blockfi, Coinbase, Gemini, Bitso, BuenbitRain Financial and Bybit have fired employees. Executives have had to reduce their workforce because of volatile markets and crypto winter.
Wu detailed that “the main reason” why Huobi is laying off staff is because of “the sharp drop in revenue after the removal of all Chinese users.” However, there has been no official announcement about such actions stemming from official Huobi sources.
The company spokeswoman Explain to Coindesk reporter Oliver Knight on June 28, that Huobi is in the process of reviewing the firm’s policies. “Due to the current market environment, Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of re-aligning them to its operational needs. Further to such review, layoffs are a possibility,” the Huobi representative said.
On July 1, 2022, Colin Wu shared another “exclusive” by revealing that Huobi’s co-founder Leon LiWu is said to be trying to sell a portion of the company. Wu’s claim is unverified and no official announcement about such actions has come from Huobi.
“Huobi founder [Leon]Lin wants to sell Huobi’s stake. Li Lin currently holds more than 50% of the shares,” Wu detailedFollow us on Twitter. “The second-largest shareholder of Huobi is Sequoia China. Huobi’s revenue plummeted after it wiped out all Chinese users and is laying off staff.”
Huobi’s growth has been significant over the last 12 months. According to Coingecko, the exchange ranks fifth in terms of trade volume. Statistics.
Huobi has 1027 trading pairs and 577 digital currencies. In the 24 hour period, Huobi has received $856 Million in worldwide trade volume.
Huobi Global has $7.86 Billion in AUM, making it the third-largest central exchange. According to data from Bituniverse and Etherscan as well as Chain.info, Huobi has 160,950 BTC and 2.13M ether. Huobi also holds $746.3 Million worth of USDT.
Huobi declared that the company would cease operations at May 2022. AcquiredLatin American cryptocurrency exchange Bitex. Huobi created Ivy Blocks, a Web3-centric investment arm that launched two weeks later.
What do you think about Huobi reportedly laying off 30% of the company’s workforce? What do you think about the story concerning Huobi’s CEO Li Lin? Please comment below to let us know your thoughts on this topic.
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