According to Chinese journalist Colin Wu, aka “Wu Blockchain,” cryptocurrency company Huobi may lay off 30% of the company’s staff due to “sharp decline in revenue” . Additionally, the reporter claims that Huobi co-founder Leon Li is reportedly considering selling a large stake in the digital assets company.
Colin Wu Reports Layoffs Are Coming to Huobi and the Alleged Sale of 50% Stake
June 28, 2022Colin Wua local cryptocurrency and blockchain journalist in Chinaexplained that Huobi is “launching layoffs that may exceed 30%”
Layoffs have plagued the crypto industry with companies like Blockfi , Coinbase Gemini, Bitsaw, Buenbit , Rain Financial, Bybit, and 2TM have let employees go. Crypto winter and volatile markets are the main reasons executives have decided to cut back on the number of workers.
Wu detailed that the “main reason” Huobi is laying off staff is “due to a sharp drop in revenue after the removal of all Chinese users.” However, there is no official announcement of such action emanating from official Huobi sources.
A company spokesperson did explained to Coindesk reporter Oliver Knight on June 28 that Huobi is in the process of reviewing company policy.” Due to current market conditions, Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of realigning them with its operational needs. In addition to such a review, there is the possibility of layoffs,” a Huobi representative said.
On July 1, 2022, Colin Wu shared another “monopoly” by revealing that Huobi co-founderLeon Liis reportedly trying to sell part of the company; Wu’s claims are unverified and no no official announcement has been made by Huobi regarding the action.
“Huobi founder [Leon] Lin is trying to sell his stake in Huobi; Li Lin currently owns over 50% of the company,” Wu elaboratedon Twitter.” Huobi’s second largest shareholder is Sequoia China, which is laying off staff as Huobi’s revenue plummets after wiping out Chinese users.”
Huobi has seen significant growth over the past 12 months, making the exchange the fifth largest centralized trading platform by volume, according to Coingecko . according to Statistics .
Huobi offers 577 digital currencies and has 1027 trading pairs. In the past 24 hours, the exchange has recorded a global turnover of $856 million.
Huobi Global is the third largest centralized exchange with $7.86 billion in assets under management (AUM) at the time of writing, according to Bituniverse, Peckshield, Etherscan, Chain. Info data shows that Huobi holds 160,950 , BTC, 213 million ether, worth $746.3 million, and USDT.
At the end of May 2022, Huobi announced acquired acquired the Latin American exchange Bitex. Two weeks later, Huobi launched an investment arm focusing on blockchain and Web3 called Ivy Blocks.
What do you think about Huobi’s reported layoff of 30% of its workforce, and what do you think about the story about Huobi CEO Li Lin? Let us know what you think about this subject in the comments section below.
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