As per a recent exclusive reporting by the Chinese crypto-journalist Colin Wu, the Hong Kong-based crypto exchange giant Huobi Technology Holdings Ltd. is facing some serious issues this crypto winter.
According to a tweet shared by Wu, the founder of the exchange, Li Lin has decided to sell his stake in Huobi. Notably, Lin holds over 50% of the shares of the company, with Sequoia China being the second-biggest shareholder of the exchange.
EXCLUSIVE: Huobi founder Li Lin is looking to sell his stake in Huobi. Li Lin currently holds more than 50% of the shares. The second largest shareholder of Huobi is Sequoia China. Huobi’s revenue plummeted after it wiped out all Chinese users and is laying off staff. https://t.co/67KOlW9aT9
— Wu Blockchain (@WuBlockchain) July 1, 2022
The reported decision of Lin to sell his shares coincides with Huobi’s revenue plummeting after it wiped out all Chinese users. Interestingly, the company had been ruling in the region before the Chinese government’s crackdown on crypto mining and trading. After exiting China, it decided to shut down its operations in Singapore due to regulatory issues, as TheCoinRise reported. Moreover, a couple of weeks back, Huobi announced that it is operating in Thailand after the regulator revoked its operating license in the nation.
Huobi downsizes its staff
As per an earlier report by Wu, the crypto exchange Huobi is also starting to cut off its staff during the ongoing bearish market. The reason for the downsizing is reportedly touted to be “the sharp drop in revenue after the removal of all Chinese users.” However, there has been no official announcement by the exchange yet.
Huobi, which made a profit of $1 billion in 2021, is not the only crypto company that has been hit by adverse situations in the crypto industry. With plummeting prices, several crypto exchanges, including Coinbase, BlockFi, Bybit, and Crypto.com, have announced trimming off their staff size. Several crypto lending platforms like Celsius Network have also been majorly affected by the market conditions, with a serious liquidity crisis.
Recently, as TheCoinRise reported, Hong Kong-based crypto lending platform Babel Finance also reported its liquidity problem and the steps it is taking to sort the issue.