Huobi exchange which has announced the lay off for almost 50 percent of its staff is still profitable. The chief executive of Huobi Global, Livio Weng Xiaoqi claims that the firm’s valuation is profitable every month.
Turning Profits Amidst Layoffs and FSA Licencing
During an interview, Weng in his Beijing office discusses how Houbi is still worth profiting regularly. Although the figures for profit is a matter of secret but Weng credits ‘transaction fees’ as the main source of earning for exchange. He said that;
“We do not know how long the bear market will last, so it is still possible that we will struggle to survive. We have to plan in advance and spend money carefully.”
Huobi global, the main exchange business is reportedly contributing as much as 70 percent of its total revenue. As per the data from Coinmarketcap, the exchange valued the average trading volume of $256,282,917, plunged to the eighth position by losing 25.43 percent during 24hrs.
Regulated Crypto Exchange
Despite the strict regulatory compliance, Huobi exchange intends to reach millions across the world. Significantly, Huobi on 17th Jan 2019 has acquired a license from FSA (Financial Service Agency) to capture the Japanese market. By acquiring the license, the exchange is now a fully licensed platform in Japan. Interestingly, the firm is also merged with BitTrade exchange which was one of the 17th exchange receiving the license from FCA. Following the acquisition, BitTrade’s existing customers are expecting to have new account with Huobi Japan and to undergo with KYC process as well. Haiteng Chen, Huobi Japan CEO says;
“We’re looking to continue to grow our presence here while offering top-notch digital asset trading services in Japan.”
Huobi’s mission of capturing the global market is likely the reason why it wants to be a fully licensed firm across the various countries. Notably, until now, it has obtained the license in USA, Japan, and Europe. In a similar context, Weng reveals that Huobi’s major audience is Chinese who live outside of China. Accordingly, he says that 70 percent of Houbi’s customer who is Chinese uses VPN service. He notes that,
“Our greatest advantage over competitors is that we have licenses in all major countries – we are the only one among top global exchanges,”
Besides operating as a crypto exchange, Huobi is also exciting the people interested in future trading. Accordingly, in late 2018, it has launched the ‘derivative trading platform’ in competition to OKEx and BitMEX exchange. As on Jan 17, 2019, Huobi Derivative Market marks more than $20 billion as per the reports. Further, the achievement co-relates the company’s believe of catering to customer’s requisites. Livio Weng says that;
“I believe this explains our platform’s explosive growth, even in the midst of the ongoing bear market,”
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com