Huobi to Begin Layoffs and Founder to Sell a Significant Stake in the Company

Huobi to Begin Layoffs and Founder to Sell a Significant Stake in the Company

Chinese media person Colin Wu, known as "Wu Blockchain," reports that the cryptocurrency company Huobi may lay off 30% of its staff due to "a sharp drop in revenue." The reporter also claims that Huobi’s co-founder, Leon Li, is reportedly looking to sell a large stake in the digital asset company.

Colin Wu Reports Layoffs and the Sale of a 50% Stake

Colin Wu, the cryptocurrency and blockchain writer from China, reports that Huobi "will start layoffs, which may exceed 30%."

Layoffs have been plaguing the crypto industry in recent times. Companies such as Blockfi, Coinbase, Gemini, Bitso, Buenbit, Rain Financial, Bybit, and 2TM have all opted for layoffs. The crypto winter and volatile markets have been the main reasons behind the decision to reduce the workforce.

Huobi is laying off staff due to "the sharp drop in revenue after the removal of all Chinese users," reports Colin Wu. However, there has been no official announcement from Huobi sources.

On June 28, the company spokesperson explained to Coindesk reporter Oliver Knight that Huobi is in the process of reviewing the company’s policies. "Due to the current market environment, Huobi Global is in the process of reviewing both its hiring policies and its current manpower, with the goal of re-aligning them to its operational needs. Further to such review, layoffs are a possibility, "the Huobi representative had said.

On July 1, Colin Wu shared another "exclusive" by revealing that Huobi’s co-founder Leon Li is reportedly attempting to sell a major stake in the company. However, Wu’s claim is unverified and an official announcement from Huobi sources is awaited.

"Huobi's founder is looking to sell his stake in the company. Leon Li currently holds more than 50% of the shares," Wu wrote on Twitter. "The second-largest shareholder of Huobi is Sequoia China. Huobi’s revenue has dropped after removing all Chinese users and is to lay off staff."

Huobi has seen significant growth during the past 12 months, and the exchange is the fifth largest centralized trading platform by trading volume, according to Coingecko. Huobi offers 577 digital currencies and 1027 trading pairs. During the past 24 hours, the exchange has seen $856 million in global trading volume.

Huobi Global is the third-largest centralized exchange in terms of assets under management (AUM) with $7.86 billion. Data from Bituniverse, Peckshield, Etherscan, and Chain.info indicates that Huobi holds 160,950 BTC, 2.13 million Ether, and USDT valued at $746.3 million.

At the end of May 2022, Huobi announced the acquisition of the Latin American exchange Bitex. Two weeks later, Huobi launched a blockchain and Web3-centric investment arm called Ivy Blocks.