After Huge Layoff Plans, Founder Of Top Crypto Exchange Looking To Exit
The ongoing meltdown in the crypto market is impacting all kinds of companies in crypto space alike. And crypto exchanges are not excluded from the horizon of market crash.
Huobi Founder Looking For An Exit After Crypto Layoffs?
After reports suggested that Seychelles-based cryptocurrency exchange Huobi was considering massive layoff plans, there is yet another fallout. The exchange’s founder Li Lin is reportedly looking for an exit from the company. This comes in the backdrop of a major blow to Huobi’s revenues after it got rid of Chinese user accounts on the platform.
According to Colin Wu on Twitter, Lin is considering sale of his stake in the exchange. Lin potentially holds over half of Huobi’s shares.
“Huobi founder Li Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares. The second largest shareholder of Huobi is Sequoia China.”
Last week, Wu stated that Huobi could be considering job cuts by more than 30% of the existing workforce. A sharp drop in Huobi’s revenue thanks to removal of Chinese user accounts likely forced this move. The exchange’s revenue fell sharply after the users were removed, forcing crypto layoffs.
Standing Strong Despite The China Blow?
Last year, a ban on crypto in China forced Huobi to remove millions of Chinese user accounts from its platform. The massive removal resulted in reduction of over 80% in trading volume on the platform. A crypto enthusiast Panda felt Huobi did well in surviving the pressure of withdrawals. “The removal accounted for 80% of trading volume, yet Huobi survived coin withdrawal pressure and still standing strong today.”
Meanwhile, Huobi is still in the list of top 10 crypto exchanges. The exchange is in top 10 with the criteria in terms of in terms of traffic, liquidity, trading volumes, and confidence, according to CoinMarketCap. The exchange gives traders access to about 582 cryptocurrencies and around 1133 listed market pairs.
In a latest, cryptocurrency exchange Vauld said it had suspended all withdrawals, trading and deposits on its platform with immediate effect. On Monday, the Singapore-based company added that it was exploring restructuring options with financial and legal advisors. Financial challenges in the crypto space have on various fronts caused this move from the Vauld management.
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