The cryptocurrency market has been bleeding for a long time. As a result, many large companies, from hedge funds to DeFi companies, are adversely affected. In addition, cryptocurrency exchanges that are not closely related to DeFi also suffer from the decline. Accordingly, the founder of a famous Bitcoin (BTC) exchange aims to leave the company. Here are the details…
The founder of the famous Bitcoin exchange wants to leave
Seychelles-based Bitcoin exchange Huobi was under the influence of a big news. Accordingly, the founder of the exchange, Li Lin, is looking for ways to leave the company. The incident comes after Huobi’s plans for major layoffs were revealed. However, the main reason is estimated to be related to China. As we reported as Kriptokoin.com, Huobi was recently forced to suspend the accounts of its Chinese customers. This event dealt a great blow to the revenues of the stock market. According to Colin Wu on Twitter, Lin plans to sell his stake in the stock market. Accordingly, Lin owns more than half of Huobi’s shares.
“Huobi founder Li Lin wants to sell his stake in Huobi. Li Lin currently owns more than 50% of the shares. Huobi’s second largest shareholder is Sequoia China.”
Huobi plans to lay off employees
Colin Wu also shared about Huobi last week. Accordingly, the Bitcoin exchange plans to lay off 30 percent of its current employees. Huobi had to remove the accounts of its Chinese users from the exchange last year. After that, a major contraction in the company’s revenues occurred. Here, this sharp drop in revenues has now caused the company to consider layoffs. The removal of users seems to be the main reason for Li Lin’s desire to leave and the high expectations of layoffs.
Will Huobi survive the Chinese coup?
China passed a law last year banning its citizens from investing in cryptocurrencies. As a result, Huobi had to suspend the accounts of millions of its Chinese customers. The widespread suspension resulted in a drop of up to 80 percent in the trading volume of the Bitcoin exchange. One BTC enthusiast, using the alias Panda, claimed that the exchange is holding strong despite the loss of revenue:
“The removal was equivalent to 80% of the trading volume. However, Huobi has managed to survive the pressure of cryptocurrency withdrawals. Additionally, it still stands strong today.”
The data supports Panda’s views. According to CoinmarketCap, Huobi; still in a good position in terms of traffic, liquidity, trading volume and trust. It is even among the top 10 cryptocurrency exchanges. Currently, 582 cryptocurrencies are traded in Huobi, including Bitcoin (BTC). There are also 1133 parities for these altcoins.
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