The rumor mill starts up again shortly after the New Year. According to some insiders, the next crypto exchange could be busted. This time, it’s Huobi. Is Crypto exchange Huobi on the verge of insolvency? Let’s take a look at it in more detail.
What is Huobi?
Huobi is a cryptocurrency exchange where users can buy and sell digital currencies. The company was established in 2013 and is based in Singapore. Huobi is one of the world’s largest cryptocurrency exchanges, offering a wide range of trading pairs for various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and many others. The platform is available in several countries around the world, including China, Japan, and the United States.
Why could Huobi be insolvent?
The cryptocurrency exchange announced today that it intends to lay off 20% of its workforce. This will happen as part of the post-Justin Sun restructuring. “The planned layoff rate is 20%,” a spokesman said. He was vague about the 40% prediction and stressed that it was just a rumor. We won’t know how many employees will be laid off until the next few weeks.
#Huobi seems to be melting down in real time, possibly along with His Excellency #JustinSun's fortune…— ⚯ M Cryptadamus ⚯ | @[email protected] (@Cryptadamist) January 5, 2023
Shut down all intra-employee IMs etc, maybe fired a bunch of people. Employees now angry (or Sun is ruggin') @HuobiGlobal @justinsuntron https://t.co/0PGGHKtX8D pic.twitter.com/VioEzdRwVo
A tweet from the user “Cryptadamist” adds to the embers by specifying that all employee chats have been forced to close and communication is no longer possible. In conclusion, he stated that there can only be two possibilities:
- Either a large number of employees are laid off
- or Justin Sun pulls a rug.
Huobi had a net outflow of $85 million over the last 24 hours, taking account for 2.9% of total revealed assets, and a net ﬂow of $135 million over the last 7 days, according to DeFiLlama. As per Huobi’s most recent statement, the number of layoffs is 20% or approximately 300 people.
Justin Sun withdrew 62 million USDT and 60 million USDC from Justlend yesterday. Moreover, he utilized Binance to turn 100 million TRC20 USDT into ERC20 USDT and USDC. Sun may implement such strategies in response to Huobi’s recent large asset outflow.
In order to calm the anger of employees, Huobi urgently announced the replacement of the head of HR with Ryan Wang, an old employee of the company, and said that some employees would be promoted and raised.— Wu Blockchain (@WuBlockchain) January 6, 2023
Now, to appease employees, Huobi quickly announced the replacement of the head of HR with Ryan Wang, an old company employee, and stated that some employees would be promoted and raised.
Huobi consultant Justin Sun tried to address speculations of alleged insolvency in a Jan. 5 tweet, asserting the exchange’s planning process was “good” and the “security of users’ assets will always be completely protected.” Sun also appeared to abandon speculations of disgruntled people, asserting that Huobi will “completely respect the lawful demands made by local employees.”
Justin Sun's HR is communicating with all Huobi employees to change the salary form from fiat currency to USDT/USDC; employees who cannot accept it may be dismissed. The move sparked protests from some employees. Exclusive https://t.co/QB4sjDyHc7— Wu Blockchain (@WuBlockchain) January 4, 2023
Previously, on January 3, there were reports that Sun had shifted Huobi employee salaries from being paid in fiat to being paid in either Tether USD or Tor USD Coin.
What should you do in such a case?
The haunting alert compelled one Twitter user to proclaim that Huobi appears to be collapsing in real-time,” while others recommended users withdraw cash from the exchange due to the speculations.
Although these are only rumors, for the time being, caution must be taken. Because previous incidents, such as FTX, showed the importance of taking accusations seriously. That would indicate that all customer funds should be withdrawn from Huobi and transferred to another exchange or wallet. It should be stressed that it is always preferable to act quickly before it is too late.
Ripple Price Prediction – How High will XRP reach in 2050?
Tron Breaks into Top 10 Cryptocurrencies, Eyes Top 5
Huobi COO Arrested – Huobi Token Plummets Amidst Bizarre Happenings
Ripple Price Prediction – How High will XRP Reach in 2025?
Filecoin Price Analysis – FIL Price Reaches $200 With A $3 Billion Market Capitalization
Should You Invest In TRON? : The Story of Tron Blockchain and a Lot of FOMO
Tron’s Dream Home giveaway fuels rumors of future developments
Big News: Ripple Price is about to TRIPLE? This News Confirms…
What is the Huobi Token price prediction for 2024?
Will Tron (TRX) Oust Litecoin (LTC) From 7th Spot?
The Big Ripple Price Prediction for 2023 – How high can the XRP price go in 2023?
Tron Organizes Steem Takeover, Binance/Huobi/Poloniex Enable It
Justin Sun Supports FCoin Scam, What You Need To Know About It
Cardano Basho: When is the next big Cardano update coming?
The Next black Swan Event?: Gate.io and Crypto.com Seem to be Fabricating Proof of Reserves
Breaking: Police raid TRON office in Beijing?
Tron Price is about to DOUBLE? THIS Chart confirms…
Shiba Inu to Reach 1$ soon? This New Upcoming Development Proves it Right
Tron (TRX) Main Net Fails to Impress But Hopes are Alive
Facebook Contest Winners to Get iPhone X from Tron
Justin Claims Tron Is 2nd Largest DApp Platform But There’s More
You might also like
More from Altcoin
Gate.io Dismisses Withdrawal Rumors Amid Multichain Crisis
This article dives into the origins of the rumors, examines Gate.io response, and discusses the impact on its token value …
Pepe Coin CRASH: Should you BUY other Memecoins?
While Pepe Coin dominance has taken the crypto space by storm, experts are predicting that its reign might be nearing …
Aptos Airdrop 2: How to Participate in Aptos Second Airdrop
Aptos has announced the second round of its airdrop, providing an exceptional opportunity for investors to acquire digital assets at …