Because of plans to lay off several workers and other internal conflicts, Huobi's token price has been seriously fluctuating in the past weeks.
According to reports from trusted sources, the company is reportedly planning to lay off more than 20% of the company's employees, leading to a slump in Huobi's token price.
Not only has the internal conflicts brought a disaster to the exchange trading token, but the Huobi exchange review also shows that the company has been suffering from a steady decline in trading volume. This means fewer users come to the exchange to carry out crypto transactions.
Data provided by CoinGecko shows that Huobi’s HT token has fallen by nearly 11% in the last 24 hours as traders are panicking about what will become of the company. While the company's head may think otherwise, data shows that Huobi’s HT token fell by nearly 30% in its price last month. Also, in the last 24 hours, other data showed that the exchange trading volume has come down to $395 million instead of $510 million.
The news of Huobi layoffs even came with much controversy. According to reports, the company allegedly forced their employee to accept their salary on stablecoin or risk leaving the company. Those who have rejected the offer are reportedly being placed on the list of workers to be laid off in the first quarter of 2023.
Another reporter from sources on Twitter suggests that Huobi is already locking out some workers from the company's internal communications channel. Actions like this have decreased Huobi's token price in the last few weeks.
During an interview with Hong Kong’s SCMP, Justin Sun denied Huobi laying off 20% of their working staff. However, new reports from Reuters suggest that the crypto exchange might still be going on with the layoffs.
More Details About Huobi's Layoffs
According to Reuters, Huobi reportedly obtained a text from Justin Sun suggesting that the crypto exchange will be laying off workers at the end of the first quarter of 2023. Tron founder Justin Sun told Reuters that the crypto exchange was planning to continue with the reduction in headcount, although it might not happen in January.
However, Reuters reported that he gave his word concerning the company doing that in the year's first quarter.
Tron founder Justin Sun is a Chinese cryptocurrency entrepreneur who is also a member of Huobi's global advisory board and has access to important information.
According to the Tron founder, the layoffs were what he called "structural adjustment," It will be completed before the first quarter of 2023 ends. Further information suggested that the company was suffering from a decrease in users, which the steady decline in Huobi token price can confirm.
Huobi exchange review also shows that the company suffers from post- FTX scandal effects. New data by an independent suggests that Huobi might be using the same structure, which led to the collapse of FTX.
A new report from CryptoQuant shows that Huobi is relying on almost 80% of its exchange token to fill up its reserves. These were the same steps FTX took, leading to their collapse and distrust among many crypto exchanges.