Leon Li, founder and CEO of global exchange giant Huobi, reportedly said 50% of the company’s earnings struggle after banning Chinese users. I am trying to sell the above shares.
Exclusive: Huobi founder Li Lin wants to sell Huobi’s stake. Li Lin currently holds more than 50% stake. Huobi’s second largest shareholder is Sequoia China. Huobi’s revenue plummeted after wiping out all users in China and dismissing staff. https://t.co/67KOlW9aT9
— Wu Blockchain (@WuBlockchain) July 1, 2022
Huobi is downsizing
Due to the recent downturn in the crypto market, many exchange platforms quickly cut costs to survive the winter. Downsizing was the first choice for such a crypto company.
In mid-June, the tendency to fire spread within the crypto market, where many crypto companies fired up to 25% of their staff. In addition, many have already gone bankrupt and will soon be completely bankrupt, according to FTX founder Sam Bankman-Fried.
Huobi is one of the exchanges that experiences difficulties. June 28, exchange publication It banned all Chinese users. As a result, Huobi’s revenue has declined significantly and the company has taken precautions.
Huobi is expected to dismiss about 30% of its staff, which is equivalent to 300 people. A spokesman for one company commented on Huobi’s financial problems. Said:
“Due to the current market environment, Huobi Global is reviewing both its recruitment policy and current talent with the aim of re-adjusting it to meet operational needs. In addition to such reviews, layoffs There is a possibility. “
Huobi Expulsion The same is true for Chinese users in September 2021. After removing it, the Huobi token was also the lowest in 8 months.
Huobi expansion plan
In February 2022, Huobi publicly talked about plans to expand in the US market.
The company shut down its business in the United States four years ago to comply with the regulations of the time. Huobi co-founder DuJun talked He talked about future initiatives, such as setting up a headquarters in Europe at CNBC in February and expanding to the United States.
Jun said:
“We tried to enter the US market in 2018, but withdrew immediately because we didn’t have a strong commitment to the market at the time and we didn’t have a good management team in the US.
I think asset management will be a bigger business than an exchange, just like a traditional financial market. I don’t think exchange is a necessary factor to enter the United States. “
While disclosing the specific services Huobi aims to offer, Jun added that the company will return to the United States in a more “integrated and influential” way.
At that time, Bitcoin was trading for about $ 40,000 to $ 45,000. As of this writing, Bitcoin is priced at $ 19,490.
