BlocksInform
With the aim of overcoming unprecedented market turbulence, Huobi is the last company to introduce job losses. Cryptographic exchange plans to lay off approximately 20 percent of its personnel, a move that was confirmed by the founder of tron and member of the huobi – justin sun World Advisory Council.
In a text message to Reuters, Sun said the “structural adjustment” has not started and is expected to reach a conclusion by the end of the first quarter this year.
“Ignore the FUD”
The confirmation comes hours after Sun alleviated the investors’ concerns and asked the community to ignore the FUD reiterating BINANCE CEO CZ’s words.
The contagion caused by FTX has caused a number of businesses to collapse in recent weeks. More recently, speculation about Huobi’s job cuts and strife in internal communications rang alarm bells triggering significant withdrawals by investors. According to data compiled by DeFiLlama, Huobi recorded an outflow of more than $85 million over the past 24 hours alone, taking its weekly outflows to nearly $136 million.
While addressing rumors of potential insolvency, Sun said,
“In conclusion, at Huobi, our strategy is to “Ignore FUD and Keep Building.” By remaining faithful to our purpose, investing in tech and safety, and to hear from our users, we can provide a reliable and reliable platform for our users to purchase, sell, and exchange cryptocoins."
Sun earlier brushed off rumors of mass lay-offs at Huobi after Chinese reporter Colin Wu claimed that the exchange was looking to scrap all year-end bonuses amid an ongoing industry slump.
Huobi’s Proof-of-Reserves
Huobi’s recently released proof-of-reserves revealed that the crypto exchange relied most on its own token to denominate its reserves. Caue Oliveria, one of CryptoQuant’s author-analysts, revealed that around 44.36% of its capital is allocated in HT and described its reserves as having a “highly risky setup at the moment.”
The low stable allocation was yet another red flag which, according to Oliveria, is unfavourable to crypto exchange.
'According to the data collected by CryptoQuant, about 44.36% of its capital is allocated in excl. tax, a chip issued by the platform. Are we talking about the next crash? This type of risk can put pressure on the durability of the platform if removals are high, as was the case with the FTX."
