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The crypto-currency huobi dismisses 20% of its employees, according to numerous reports in the last two days. However, Huobi adviser Justin Sun, the founder of Tron, said in the morning post in southern China that the dismissal reports were false. A huobi spokesman subsequently confirmed that the staff reductions are real and huobi plans to maintain "a very thin team" in the future.
Justin Sun of Huobi denies the layoffs in a context of controversy and alleged protests by employees.
According to reports, digital currency exchange Huobi has laid off approximately 20% of its staff. Colin Wu first reported on the situation on Dec. 30, 2022, and said: “Justin Sun’s Huobi exchange will cancel all year-end bonuses, and will prepare to lay off the team of 1,200 people to 600-800 people, and cut the salaries of senior employees, according to several insiders.” Wu added a later update about Jan. 5,
Justin Sun’s HR is communicating with all Huobi employees to change [their] salary form from fiat currency to USDT/USDC; employees who cannot accept it may be dismissed. Some employees objected to the movement.
As speculation grew, Sun was asked about the situation by reporters from the South China Morning Post (SCMP) and denied the layoffs were taking place. However, a through coindesk confirmed that the termination speculation was true. “With the current state of the bear market, a very lean team will be maintained going forward,” a Huobi spokesperson told Coindesk via email.
.@HuobiGlobal is an exchange that was founded in 2013 and has since grown to become one of the most popular exchanges in the world. Huobi has a strong focus on technology and security,and it has implemented a number of measures to ensure the safety of its users and their assets.
— His Excellency Justin Sun (@justinsuntron) January 6, 2023
Besides staff cuts, another Twitter issue suggests that Huobi employees created fake Twitter accounts to complain to Sun about the situation. "Apparently Justin Sun tried to dissolve the business (which would probably leave all employees out of work)", the detailed report. The report also found that Huobi's problems were similar to the situation when the "Hooexchange CEO carpeted his staff."
On Jan. On May 5, 2023, the sun tried to reassure the community that everything was all right in a Chinese-language tweet. Here is an approximate interpretation of the tweet:
Recent business development dynamics [Huobi Global] are good, and core indicators have sustained rapid growth. The average daily growth rate of new registered users and capital inflows surpasses the 2022 peak. And the first 1000 times pieces like pi and bonk have been created, and the volume of related foreign exchange transactions is the largest in the sector, leading several key points in the industry and continuing to drive market recovery.
According to the Twitter report, there have been many responses written in Chinese claiming that things are not going well at Huobi. One specific tweet written in Chinese alleges that Huobi’s “Merkle tree and trading volume officially announced by Huobi are fake.” The person adds that Sun should "pay employees' salaries" and "if you want to lay off employees, please respect the labour law."
On Jan. 6, 2023, Sun several tweets stressing that the exchange was still in good standing, saying “At [Huobi Global], we believe that the key to success in the world of cryptocurrency is to ‘Ignore FUD and Keep Building.'”
What are your thoughts on the Huobi layoffs and the speculation surrounding the crypto exchange? Reflect on these in the comments section below.
