Several prominent cryptocurrency exchanges like Coinbase have announced plans to reduce their staff during the past two months following the crypto winter, Huobi is likely to be the next on the list.
It has been learned that Seychelles-based cryptocurrency exchange Huobi will soon announce a reduction in staff of more than 30%. Huobi will probably start making layoffs, according to an insider tip from Wu Blockchain on Twitter. Huobi’s revenues are claimed to have fallen precipitously, forcing the decision.
“Cryptocurrency exchange Huobi will start layoffs, which may exceed 30%. The main reason is the sharp drop in revenue after the removal of all Chinese users.”
A cryptocurrency ban in China forced Huobi to start deleting millions of Chinese user accounts from its platform in October of last year. This appears to be the cause of the exchange’s revenue production issues.
In order to reduce the risk of probable market swings before settlement, the business advised its users to liquidate their holdings before the deadline. Huobi completely stopped providing futures, contracts, and other derivatives services to all Chinese users in response to the restriction.
According to a recent announcement, Huobi’s Thailand branch will be permanently shut down as of July 1 due to the regulators revoking its license. The management structure of the Thailand unit was determined to be inadequate by the regulators since it did not follow the rules.
Crypto market decline prompts layoffs
The acute market scenario and the macroeconomic issues were the unifying theme of all the statements. Even as recently as last week, the European exchange BitPanda justified employment losses by blaming a sharp shift in market sentiment. This occurred in the wake of an earlier announcement of employee layoffs by another exchange, Bybit.
The move was prompted, according to BitPanda at the time, by market developments brought on by growing inflation and worries about an impending recession. The financial markets are currently very unsettled, it was added.
Gemini, a cryptocurrency exchange, revealed earlier in the month that it will be laying off 10% of its workforce. Additionally, leading exchange Coinbase continues to delay recruiting “for the foreseeable future.” The halt was explained as being caused by the continuing company prioritization efforts and the present market conditions.
