All types of businesses operating in the cryptocurrency industry are being impacted by the ongoing market collapse. And it does not exclude the crypto currency exchanges.
There is yet another setback after rumours that the Seychelles-based bitcoin exchange Huobi was considering major layoff plans. Li Lin, the exchange’s founder, is apparently planning to leave the company. The removal of Chinese user accounts from the platform caused Huobi’s revenue to take a significant hit.
Colin Wu said on Twitter that Lin is thinking about selling his exchange share. According to reports, Lin owns more than half of Huobi’s shares.
“Huobi founder Li Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares. The second largest shareholder of Huobi is Sequoia China.”
Wu said last week that Huobi might be considering at laying off more than 30% of the current employees. This action was probably driven by a substantial decline in Huobi’s revenue caused by the removal of Chinese user accounts. Following the users’ removal, the exchange’s revenue decreased drastically, necessitating bitcoin job cuts.
Standing Firm Despite the China Blow?
A Chinese cryptocurrency ban from the previous year forced Huobi to terminate millions of Chinese user accounts from its platform. The platform’s trading volume was reduced by almost 80% as a result of the extensive removals. Panda, a crypto enthusiast, felt Huobi handled the demand of withdrawals admirably. “The removal accounted for 80% of trade volume, yet Huobi managed to withstand pressure from coin withdrawals and is still going strong today.”
According to CoinMarketCap, Huobi is still among the top 10 cryptocurrency exchanges in terms of trading volumes, liquidity, traffic, and confidence. On the exchange, up to 582 cryptocurrencies with around 1133 market pairs are available for trading.
