Huobi, the cryptocurrency exchange, has become the latest company to tighten its belt in the midst of the crypto winter, confirming intentions to lay off 20% of its workforce as part of its continuing reorganisation process.
A Huobi spokeswoman informed Kitco Crypto that the exchange intends to continue operations with “a very small crew” despite the current bad market.“The staff optimization seeks to apply the brand strategy, optimise the structure, increase productivity, and return to the top three,” says the company.
Last October, Huobi Global majority shareholder Leon Li sold his whole position in the crypto exchange to About Capital, a Hong Kong-based investment firm managed by Tron founder Justin Sun, according to reports.Soon after, the restructure was announced, and Sun was appointed to Huobi’s advisory board.
The exchange also denied allegations of its insolvency and echoed assertions made by Sun, who recently tweeted that the exchange’s financial situation was stable and user assets were properly safeguarded.
Following the layoff announcement, the price of Sun’s Tron (TRX) token fell 9.22% from approximately $0.055 to a low of $0.0497 before rising back above $0.0514, representing a 6.24% drop on the 24-hour chart.
The layoffs were announced a week after journalist Colin Wu first reported that the exchange was trying to cut expenses and begin paying employee salaries in stablecoins rather than fiat currency, prompting employee objections.
Huobi Token (HT) fell 17.15% from a high of $5.22 on Thursday to a low of $4.32 in trading on Friday, but has since risen to $4.64.
Several crypto analysts noticed that around the time the price of HT stopped falling and began to rise, a wallet affiliated with Sun transferred $100 million in stablecoins to Huobi.Huobi users saw the creation of a $1 million buy wall for HT shortly after the transactions, indicating that someone was willing to spend $1 million to assist prevent the price of HT from falling further.
In light of Huobi-related worries, the Tron-based stablecoin USDD has also faltered, losing its $1 peg and presently trading at $0.978.Data from DeFiLlama shows that this price decline resulted in a 2% reduction in the overall value locked on Tron-based decentralised applications.The price of Sun’s Tron (TRX) token dropped 9.22% from approximately $0.055 to a low of $0.0497 after the layoff announcement, according to TradingView data, before being bid back above $0.0514, representing a loss of 6.24% on the 24-hour chart.
In trading on Friday, Huobi Token (HT) also had a 17.15% price decline from a high of $5.22 on Thursday to a low of $4.32.Since then, the price has climbed back to $4.64.
Many cryptocurrency sleuths noticed that a wallet connected to Sun transferred stablecoins worth $100 million to Huobi right when the price of HT stopped falling and began to rise.Users of Huobi spotted a $1 million purchase wall for HT soon after the transfers, which indicates that someone was willing to put up $1 million to assist stop the price of HT from falling any lower.
In light of Huobi-related worries, the Tron-based stablecoin USDD has also faltered, losing its $1 peg and presently trading at $0.978.Data from DeFiLlama shows that this price decline resulted in a 2% reduction in the overall value locked on Tron-based decentralised applications.According to data from DeFiLlama, Huobi’s TVL dropped from $3.12 billion on Thursday to $2.88 billion on Friday, a loss of about $240 million.
Many have advised cryptocurrency users to withdraw their tokens from Huobi and other troubled platforms and keep them in their own custody as a result of these most recent developments and the troubles of other important exchanges within the crypto ecosystem.
News Summary:
– Huobi’s 20% employee reduction will cause HT and TRX prices to fall
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