Founder and CEO Leon Li of global exchange giant Huobi is reportedly looking to sell more than 50% of his stake in the company as the exchange faces revenue difficulties following its policy of banning Chinese users.
The Wu Blockchain Twitter page reported:
Due to the recent slump in the cryptocurrency market, many exchange platforms immediately cut costs to survive the winter. Downsizing is the first choice of such companies.
In mid-June, the trend of cutting employees spread in the market, and many companies had to cut staff such as BlockFi, and Coinbase. Moreover, even more, companies are quietly defaulting on their debt and will soon fail completely according to FTX founder Sam Bankman-Fried, as CoinCu reported.
Huobi is one of the most difficult exchanges. On June 28, the exchange announced to ban all Chinese users. As a result, Huobi’s revenue dropped significantly, prompting the company to be cautious. Huobi is expected to lay off about 30% of its staff, or 300 people.
A spokesperson for the company had several comments on the current financial troubles:
“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.”
In February 2022, Huobi publicly talked about its plans to expand in the US market. The company ceased operations in the United States 4 years ago to comply with the regulations at the time. At the time, Bitcoin was trading for around $40,000-45,000. Currently, the price is only $19,135.
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