Crypto exchange Huobi to lay off 20% of staff: Justin Sun

CRYPTO exchange Huobi plans to lay off about 20 per cent of its staff, Tron founder Justin Sun told Reuters.

Sun, a Chinese cryptocurrency entrepreneur who is also a member of Huobi’s global advisory board, said in a text message to Reuters that the “structural adjustment” has not started and is expected to be completed by the first quarter.

In an internal memo to Huobi staff, Sun said Huobi has been like “a fire in the (crypto) winter” despite the deteriorating macro environment. He said the platform has had an average of 20,000 new users the last three months.

The layoffs come against the broader backdrop of concerns about reserves and solvency at various cryptocurrency exchanges and lenders after the collapse of FTX and a series of other bankruptcies last year. Cryptocurrency firm Genesis just cut 30 per cent of its workforce in a second round of layoffs in less than six months.

Sun billed the restructuring as “short-term pains” that can eventually bring advantages to the exchange. It was not immediately clear how many staff Huobi currently has.

As per CoinMarketCap, the Huobi token peaked at US$9.40 in late October, with a 24-hour volume then of US$52.5 million. Its price on Friday (Jan 6) was US$4.50, and volume down to US$18.5 million. REUTERS