Huobi's Founder is Planning to Sell Shares Amid Firm Shrinkage
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Huobi Downsizing
Numerous exchange platforms made quick cost reductions to survive the winter due to the recent decline in the cryptocurrency market. The first option for such crypto firms was downsizing. A termination trend that saw many crypto companies fire up to 25% of their personnel began to emerge in the middle of June. In addition, many are already insolvent in secret and will collapse shortly, according to Sam Bankman-Fried, the second-largest founder of FTX.
Huobi anticipates firing 300 employees, or about 30 per cent of the workforce. Upon hearing of Huobi's financial difficulties, a corporate representative said:
"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."
Huobi publicly announced its plans to grow in the US market in February 2022. To comply with the rules in effect at the time, the company stopped its US operations four years ago. Du Jun, a co-founder of Huobi, spoke to CNBC in February about their plans, which included establishing a base of operations in Europe and growing into the United States.