Crypto exchange Huobi confirmed on Friday that it is reducing its workforce by an additional 20%, on top of layoff announcements that already affected the company over the past few months.
The latest decision relates to the ongoing depression in crypto markets, which began with the collapse of TerraLuna in 2022, but has been compounded by FTX’s demise and its missing investor money amounting to billions.
Presently, Huobi is trading around $370m daily, but it will need to continue servicing its clients with fewer people onboard, according to Huobi advisory board member Justin Sun, speaking to CNBC.
Sun largely attributed the latest layoffs to the bear market and said that the company was doing everything in its power to weather the choppy spell.
The Financial Times reported that Huobi had around 1,600 employees in October, but this number has been going down. Huobi seems to be bearing the brunt of the market decline, without necessarily contributing to it.
Many companies, and exchanges, were subjected to meticulous proof of reserves reviews, to prove that they have enough allocated value to cover the outstanding trades and customer holdings.
Huobi managed to complete its own review with flying colors, reporting $2.9bn worth of holdings – matching the funds invested by consumers.
This means that Huobi is the least to blame for the decline and a far cry from FTX which owes at least $8bn to investors with the money now reportedly gone. The exchange’s boss Sam Bankman-Fried pled not guilty to various charges, including fraud, last week.
This is not the first time Huobi has faced challenging circumstances. The company was originally founded and based in China but driven out by the 2017 rout of the crypto industry in the country.
Huobi has adapted to an international market and has done well, but the cascading drop in value has prompted the exchange to seek budget savings.
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