October 1, 2022

Huobi’s founder and its CEO, Leon Li, is reportedly looking to sell more than half of his stake in the company as the exchange faces revenue challenges as a result of its policy of banning Chinese users.

Because of the recent decline in the cryptocurrency market, many exchange platforms immediately reduced their costs in order to survive through the winter. Downsizing is the first option for such businesses.

In mid-June, the trend of laying off employees spread throughout the market, and many companies, including BlockFi and Coinbase, were forced to do so. Furthermore, according to FTX founder Sam Bankman-Fried, as CoinCu reported, companies are quietly defaulting on their debt and will soon fail completely.

Huobi is one of the most challenging exchanges. On June 28, the exchange announced that all Chinese users would be barred. As a result, Huobi’s revenue fell dramatically, prompting the company to exercise caution. Huobi is expected to lay off approximately 30% of its workforce, or 300 people.

Huobi has announced that it will cease registering new user accounts in China in September 2021. Soon after, the Huobi token hit an 8-month low.

Huobi publicly discussed its plans to expand in the US market in February 2022. To comply with the regulations in place at the time, the company ceased operations in the United States four years ago. Bitcoin was trading for around $40,000-45,000 at that time. The current price is only $19,135.

Summited by HotQA