Key Points:
- Huobi Korea plans to split from cryptocurrency exchange Huobi Global and launch its own company, according to Korean news station News1.
- Leon Lin, the founder of Huobi Global, held more than half of the existing Huobi Korea.
Huobi Korea, the crypto Korean-based exchange, is planning to split from Huobi Global and establish its own business, according to a report in Korean media News1.
The domestic coin market exchange Huobi Korea is planning to arrange its ties with the parent firm Huobi Global. It is a strategy to improve its domestic presence by changing its name to Huobi and purchasing shares.
According to industry sources on the 9th, Huobi Korea began planning to buy Huobi Global’s shares and alter its name. The organization intends to issue a call for new missions from both internal and external staff, and then finalize the mission after gathering feedback.
Leon Lin, the founder of Huobi Global, held more than half of the existing Huobi Korea. Chairman Jo Guk-Bong and Korea Land Trust are the next largest stockholders. Jo, who also runs a cryptocurrency mining company, is scheduled to buy out Lin’s controlling ownership.
The change of name and purchase of shares was viewed as drawing a line with Huobi Global in the industry. Huobi Global is a global virtual asset exchange that competed with Binance and FTX. Former engineer Li Lin launched the largest virtual asset exchange in China in 2013.
Huobi Global has had difficulty as demand for Proof of Reserve (POR) increased. This is also why Huobi Korea chose to cut ties with Huobi Global. Previously, FTX declared bankruptcy owing to a shortage of liquidity, and Proof of Reserves (POR) agreements were established amongst virtual asset exchanges to prevent clients from withdrawing cash as a result.
The decision comes after a turbulent year for Singapore-based Huobi Global, which has seen its corporate structure shift. Earlier this month, it announced plans to slash 20% of its workforce, with a representative stating that a very lean team will be maintained going forward.
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