Will Huobi repeat the fate of FTX? The exchange cuts staff, users hastily withdraw funds

Popular cryptocurrency exchange Huobi started the year with a layoff. Like many of its peers, the trading floor decided to cut its costs in order to survive in the bear market. The company’s management confirmed the planned dismissal of 20% of employees, against this background, very gloomy rumors are circulating in the crypto community.

On January 3, Chinese journalist Colin Wu, aka Wu Blockchain on Twitter, toldthat exchange employees will be paid in stablecoins instead of fiat. Those who do not agree with such a policy will be fired. At the same time, the company decided to refuse to pay annual bonuses and reduce the staff from 1200 people to 600-800.

The employees of the company were allegedly blocked from the possibility of internal communication within the company, which could lead to dissatisfaction, and, as an option, to the theft of client funds – about this wrote other knowledgeable source. He also advised to withdraw assets from the exchange until she scammed. And many followed his advice. $60.9 million of $94.2 million net outflow this week were withdrawn in the last 24 hours.

The founder of the exchange, Justin Sun, as usual, assured cryptans that he has everything under control, and the exchange has no problems. He, following the example of Binance colleague Changpeng Zhao, expressed confidence that the best strategy is to ignore the FUD and stay on course.

Last night edition Reutersciting a statement from the exchange said the company plans to lay off about 20% of employees.

Also, in response to the mass withdrawal, more than $100 million in USDC and USDT stablecoins were transferred from the wallet associated with Justin Sun to the Huobi cryptocurrency exchange accounts. The funds came from Just Lend, Tron’s lending platform.

Money has been withdrawn with Binance and then sent to Huobi, which is majority-owned by Sun. These funds should support user confidence in the trading platform. And patch up a hole in liquidity.

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