According to a report by Nansen, approximately $94.2 million has flowed out of the exchange, Huobi within the past week.
Within the last week, Huobi, a cryptocurrency exchange, has seen net outflows of nearly $94.2 million USD. The crypto analytics company Nansen estimates that $60 million has left the exchange just in the last 24 hours.
The majority of withdrawals, according to Nansen, came from wallets with large balances and were made in Tether (USDT), USD Coin (USDC), and Ether (ETH).
Rumors spreading on Twitter regarding the crypto exchange firing employees and shutting off internal communications due to financial difficulties are thought to have caused the exchange’s substantial surge in outflows.
According to a Huobi spokesman, the projected layoff ratio is roughly 20%, although it is not currently being executed, dispelling reports that Huobi was firing up to 40% of its workforce.
According to reports, the layoffs are a result of continuing reorganization after Justin Sun bought the company. Sun asserted that the exchange’s company was operating successfully and that user funds were completely protected in response to rumors over the exchange’s financial position and employee layoffs. The crypto exchange has denied these reports, but because of Sun’s antics, many users are still pessimistic about the exchange’s future.
Leon Li, the creator of Huobi and its largest stakeholder, sold all of his stock in the exchange to a firm associated with Sun in October 2022. Several influential Huobi executives left the company right away after the sale. These departures are thought to have been connected to its reform attempts.
