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One of the world’s largest crypto exchanges, Huobi Global lost a significant chunk of its market share amid news of laying-offs, shutting feedback channels, and cutting employee benefits.
Huobi undergoes structural changes
Kaioko’s data shows that Huobi’s market share slumped from a whopping 22% in 2020 to almost 4% late last year; Presently, the market is relatively less volatile, with the world’s largest exchange dominating the space in terms of trade volumes in each, centralized and decentralized exchanges.
Huobi was among the many companies that were adversely affected by Sam Bankman-Fried led crypto exchange FTX’s crash. Huobi revealed that they were unable to withdraw over $18.1 million from FTX. Out of the ~$18.1 million, nearly $13.2 million of funds belonged to customers, whereas the rest belonged to its subsidiary firm Hbit, as per media reports.
Digital assets data provider Kaiko stated: “The TRON DAO Reserve holds TRX (TRON’s native token), BTC, USDC, and USDT as collateral for USDD and its website claims a collateral ratio of over 200%. Despite its backing, USDD has failed to regain its 1:1 peg.”
TRON DAO Reserve issued stablecoin, USDD, which is more connected with Tron’s founder Justin Sun, is also performing poorly since FTX collapsed. Market rush surrounding threats of Huobi’s insolvency, led to over $64 million in outflows, bringing it to $100 million in the past week. Huobi Token (HT) saw an overall 20% decrease, according to data from blockchain analytic firm Nansen.
Huobi Global’s advisor and major shareholder Sun, in sake to boost investors’ confidence, transferred almost $100 million USDT and USDC from the world’s largest crypto exchange to Huobi.
According to Reuters, Huobi was planning to lay off almost 20% of its staff, amid the wind of cost-cutting in the sector accompanied by loosened interest of crypto investors in the digital assets space. “With the current state of the bear market, a very lean team will be maintained going forward,” the company stated.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
