Following its restructuring process, crypto exchange Huobi according to its de facto owner has made a $30 million profit during the first quarter of 2023.
According to a post published on April 10 by Justin Sun, the de facto proprietor of cryptocurrency exchange Huobi Global, the company recorded $150 million in revenue and $120 million in expenses during the first quarter of 2023 in a net income of $30 million.
Sun reports that many cost-cutting and efficiency-enhancing measures were implemented during the quarter. He forecasts that the exchange will generate $187 million in revenue and $76 million in expenses during the second quarter of 2023, yielding a net income of $110 million.
Huobi was one of the largest cryptocurrency exchanges by volume until 2021 when it began off-boarding its Chinese Mainland consumers.
Its market share declined from 19% in 2020 to an estimated 2.2% in the fourth quarter of 2022. Sun, who claims to be an “advisor” at Huobi Global, reportedly acquired 100% of the exchange’s stake in November 2022 through his company About Capital.
As part of restructuring efforts, Huobi Global reportedly laid off 20% of its workforce and reduced employee benefits earlier this year. The exchange’s native token, Huobi Token (HT), experienced a flash crash on March 10, resulting in a price decline of more than 90 percent within hours.
The token has since recovered most of its losses; however, a prominent user with the Twitter handle Lantian666 claims to have lost $4 million during the flash collapse due to margin liquidations on HT.
Despite Sun’s assertions that all users affected by the crash will be compensated, Lantian666 has not yet received complete compensation from Huobi for the incident.
