Tron founder Justin Sun said on Friday that crypto exchange Huobi plans to lay off 20% of its staff. While adviser Justin Sun previously denied rumors of layoffs, pay disputes and employee conflicts, he claims several “structural adjustments” have not yet begun and are expected to be completed in the first quarter.
Justin Sun, who is a member of Huobi’s global advisory board, confirmed in a text message to Reuters that the crypto exchange is indeed planning to lay off employees.
In an internal communication to Huobi staff, Justin Sun said the crypto exchange has survived the crypto winter. In addition, Huobi had an average of 20,000 new users in the past three months.
The move comes as concerns about reserves and solvency rise among crypto exchanges following the collapse of FTX. Recently, cryptocurrency lender Genesis laid off 30% of its staff due to FTX contamination.
Justin Sun called the restructuring “short-term pain” that could ultimately pay dividends for the stock market. When news of tensions at Huobi reached investors, they began withdrawing their assets and selling crypto tokens related to Tron and Huobi.
The price of Tron (TRX) is currently trading at USD 0.05079, down 8% in the last 24 hours. USDD stablecoin is also de-pegged against USD and is currently trading at USD 0.979.
Justin Sun Calms down Huobi FUD in Crypto Community
While Huobi is struggling with declining trading volume and earnings following the FTX crisis, Justin Sun believes the crypto exchange is outperforming other exchanges.
Justin Sun taken to Twitter to calm the FUD around Huobi facing bankruptcy risks. He said client assets are safe and securely stored in cold wallets. The company also uses multi-signature technology and reliable cloud computing to protect users’ assets.
“Huobi has a strong focus on technology and security and has implemented a number of measures to ensure the safety of its users and their assets.”
Further, he claims that the crypto exchange is committed to transparency and compliance. It follows all relevant laws and regulations of the countries in which it operates.
Also Read: Huobi Token Falls After Reports of Internal Conflict
Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by disruptive technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for quite some time and is currently covering all the latest updates and developments in the crypto industry.
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