Leading cryptocurrency exchange Huobi plans to cut around 20% of its workforce. The job cuts come at a time when the reserves and solvency of many cryptocurrency exchanges and lenders, as well as investor interest in digital assets, are declining amid current market conditions. Moreover, Huobi's layoffs are part of its restructuring.
Responding to questions from Reuters, Hobby said the expected layoff rate was around 20%, but that had not yet been achieved. In the current bear market situation, a very small group will be supported in the future.
In addition, Huobi's "structural adjustment" has not yet begun, but is scheduled to be completed by the end of the first quarter, Tron founder Justin Sun told Reuters in a statement. Sun said the exchange has about 1,100 employees. Sun is a member of Huobi's global advisory board.
The layoff announcement was shared with Huobi employees in an internal memo.
Currently, crypto investors are not only facing a good market phase, but since mid-2022, their confidence in crypto exchanges and lenders has been sharply reduced after the FTX and bankruptcy fueled concerns about reserves and solvency.
Founded in China in 2013, Huobi is one of the leading cryptocurrency exchanges with a strong presence in the Asian market. The exchange operates in Hong Kong, South Korea, Japan and the United States. Exchange spot trading, derivatives trading, betting, crypto lending, crypto income products and more. offers virtual asset financial services covering
Last year, Huobi founder Leon Li sold the majority of the company's shares to About Capital Management (HK).
Huobi is not the only one on fire, many other cryptocurrency exchanges have done the same recently due to the liquidity crisis. The latest cryptocurrency exchange may be Genesis Trading, which filed for bankruptcy due to exposure to the FTX and cut 30% of its workforce in its second round of layoffs in less than six months.
Huobi Token was trading at $4.64 on CoinMarketCap, down nearly 2% in the last 24 hours. The coin fell more than 10% on Thursday. From its all-time high of $39.81 on May 12, 2021, the token has fallen more than 88% since the beginning of the year.
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