The Huobi Cryptocurrency Exchange logo displayed on a smartphone.
Nicholas Cocovlis | Nurphoto via Getty Images
Digital currency exchange Huobi reportedly said on Friday that it plans to cut its global workforce by about 20% in the latest layoffs to hit the struggling crypto industry.
According to CoinGecko data, the Seychelles-based company is one of the world’s largest cryptocurrency exchanges, processing around $370 million in daily trading volume.
A spokesperson for the company told news agency Reuters that Huobi has a “planned layoff rate” of about 20%.Bloomberg and the Financial Times also reported on the layoff plans on Friday.
“In the current state of the bear market, we will continue to have a very lean team,” a Huobi spokesperson told Reuters.
Justin Sun, a member of the company’s advisory board, described the transition to Reuters as a “structural adjustment” that has not yet begun and is expected to be completed by the first quarter.
Huobi was not immediately available for comment when contacted by CNBC. Until this article was published, Sun did not reply to his Twitter direct message.
The Financial Times reported that Huobi had about 1,600 employees worldwide as of October.
Huobi’s native HT token dropped to $4.3355 on Friday at one point, down more than 7% from 24 hours ago, according to data from CoinMarketCap.
After the fall of FTX, crypto traders are looking for clues about the next company to fall prey to the digital asset downturn.
According to the latest data available from CryptoQuant, nearly 300,000 bitcoins were moved between November 6th and December 7th, flooding investors from centralized exchanges.
Last month, Binance temporarily suspended USDC stablecoin withdrawals, raising concerns about its own ability to cover customer redemptions. After that, I resumed withdrawing USDC.
Between December 12th and December 14th, $6 billion worth of digital tokens were withdrawn from exchanges.
In a so-called “reserve proof” statement on Nov. 25, the world’s largest cryptocurrency exchange revealed that it has a reserve ratio of 101%. This indicates that there are more assets than liabilities.
Questions have been raised about the validity of proof-of-reserve reports, which only provide a snapshot of assets held by an exchange at a given point in time.
Consultancy Mothers, which had produced separate margin reports for Binance, announced on Dec. 16 that the cryptocurrency firms has completely stopped producing such documents for
Huobi was acquired by About Capital Management, a Hong Kong-based asset management company, on October 7. Sun, which founded the Tron blockchain project, is an advisor to Huobi.
Huobi was originally founded in China, but was kicked out of the country after Beijing’s crackdown on the cryptocurrency industry.
Currently, Huobi only conducts consulting and research outside of China, and trading operations are conducted outside mainland China. The company has offices in Hong Kong, South Korea, Japan and the United States.