The founder and CEO of global exchange giant Huobi, Leon Li, is reportedly looking to sell his over 50% stake in the company as the exchange struggles on the revenue front after banning Chinese users. .

Huobi is shrinking

Due to the recent cryptocurrency market crash, many exchanges immediately cut back on expenses to survive the winter. Downsizing was the first choice of such crypto companies.

In mid-June, a layoff trend spread within the crypto market, where many crypto companies laid off up to 25% of their staff. Additionally, many are already secretly insolvent and will soon go out of business, according to FTX founder Sam Bankman-Fried.

Huobi is one of the exchanges experiencing difficulties. On June 28, the exchange Announced which banned all Chinese users. As a result, Huobi’s revenue dropped significantly, forcing the company to take precautions.

Huobi is expected to lay off around 30% of its staff, which is equivalent to 300 people. A company spokesperson commented on Huobi’s financial problems, saying:

“Due to the current market environment, Huobi Global is in the process of reviewing both its current hiring and workforce policies, with the goal of realigning them with its operational needs. In addition to such review, layoffs are a possibility.”

Huobi also expelled its Chinese users in September 2021. Following the deletion, Huobi’s token also hit its lowest level in 8 months.

Huobi’s expansion plans

In February 2022, Huobi publicly discussed its expansion plans in the US market.

The company ceased operations in the US four years ago to comply with regulations at the time. Huobi co-founder Du Jun spoke to CNBC in February about his future projects, which included establishing a headquarters in Europe and expanding into the US.

Jun said:

“In 2018, we tried to enter the US market, but quickly withdrew because we didn’t have a strong commitment to the market at the time and we didn’t have a good management team in the US.

I expect asset management to be a bigger business than the exchange, which also echoes the traditional financial market. I do not believe that the exchange is a necessary element to enter the US.”

Revealing the specific services Huobi will try to provide, Jun added that the company would return to the US in a more “integrated and impactful” way.

At the time, Bitcoin traded for around $40K to $45K. At the time of writing, Bitcoin is priced at $19,490.

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