SINGAPORE (Reuters) – Cryptocurrency exchange Huobi plans to lay off about 20 percent of its workforce, Tron founder Justin Sun told Reuters.
Sun, a Chinese crypto entrepreneur who is also a member of Huobi’s global advisory board, said in a text message to Reuters that “structural adjustments” have not yet begun and are expected to be completed by the first quarter. said there is.
In an internal memo to Huobi staff, Sun said Huobi was like “a (crypto) winter fire” despite the deteriorating macro environment. He said the platform has averaged 20,000 new users in the last three months.
The job cuts come on the back of growing reserve and solvency concerns at various crypto exchanges and lenders following the FTX bankruptcy last year and a string of other bankruptcies. Cryptocurrency company Genesis has cut his 30% of its workforce in his second round of layoffs in less than six months.
Sun called the restructuring a “short-term pain” that could ultimately benefit the exchange. It was not immediately clear how many staff Huobi now has.
According to CoinMarketCap, the Huobi token peaked at $9.40 in late October with a 24-hour trading volume of $52.5 million. Friday’s price was $4.50 and volume fell to $18.5 million.
Reported by Xinghui Kok.Edited by Kim Coghill
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