Huobi's profitability returns in Q1 after restructuring of crypto exchange.

2023-04-10

Summary:
  • Huobi Global reportedly made a $30 million profit in Q1 2023 after cutting employees and benefits.
  • The exchange recognized $150 million in revenue during the first quarter compared to $120 million in expenditures.
  • Justin Sun, the de facto owner of Huobi Global, says that "a large number of measures were taken to reduce costs and increase efficiency" during the quarter.
  • Sun projects that the exchange will bring $187 million in revenue and $76 million in expenses for Q2 2023, with a net income of $110 million.
  • Huobi was one of the largest cryptocurrency exchanges until its Mainland Chinese users were off-boarded in 2021.
  • Sun reportedly purchased 100% of the exchange's stake from co-founders in November 2022.
  • Huobi Global laid off 20% of its employees and slashed employment benefits in early 2023.
  • The exchange's native token, Huobi Token, suffered a flash crash in March 2023, leading to a more than 90% drop in its price within hours.
  • Major user Lantian666 claims to have lost $4 million due to margin liquidations on HT during the flash crash.
  • Lantian666 says they have yet to receive full compensation from Huobi as a result of the incident despite claims from Sun that all impacted users will be compensated.


Full article:

After cutting employees and benefits, the cryptocurrency exchange reportedly made a $30 million profit during the first quarter of 2023.

According to an Apr. 10 post by Justin Sun, the de facto owner of cryptocurrency exchange Huobi Global, the firm recognized $150 million in revenue during Q1 2023 compared to $120 million in expenditures, resulting in a net income of $30 million. Sun says that "a large number of measures were taken to reduce costs and increase efficiency" during the quarter. For Q2 2023, he projects the exchange will bring $187 million in revenue and $76 million in expenses, with a net income of $110 million.

Huobi was one of the largest cryptocurrency exchanges by volume until the off-boarding of its Mainland Chinese users began in 2021. Its market share subsequently fell from 19% in 2020 to an estimated 2.2% in Q4 2022. Sun, who claims to be an "adviser" at Huobi Global, reportedly purchased 100% of the exchange's stake from co-founders in November 2022 through his entity About Capital. 

Magazine: Zhu Su's exchange did $13.64 in volume akshually, Huobi in crisis: Asia Express

Earlier this year, Huobi Global reportedly laid off 20% of its employees and slashed employment benefits as part of restructuring efforts. A major incident occurred on Mar. 10 when the exchange's native token, Huobi Token (HT), suffered a flash crash leading to a more than 90% drop in its price within hours.

The token has since recovered most of its losses; however, one major user, who goes by the Twitter handle Lantian666, claims to have lost $4 million due to margin liquidations on HT during the flash crash. Lantian666 says they have yet to receive full compensation from Huobi as a result of the incident despite claims from Sun that all users impacted by the crash will be compensated. 



Source: cointelegraph.com

Promoted Promote

Promoted
Promote
Name Symbol SYM Chain Market Cap Launch Votes