• Huobi, a cryptocurrency exchange, is facing reports of layoffs and requests for employees to receive their salaries in stablecoins.
• Customers are pulling their funds from the exchange, while volume is down 23%.
• Investors should be wary of the exchange and withdraw their funds until the situation is resolved.
Huobi, one of the most popular cryptocurrency exchanges on the market, is facing a turbulent period due to reports of layoffs, requests for employees to take their salaries in stablecoins, and customers withdrawing their funds.
The news of the layoffs was first announced by Justin Sun, the founder of cryptocurrency Tron and a member of Huobi’s board. According to Sun, the exchange is planning to lay off around 20% of its workforce. Following this announcement, reports began to emerge that employees were receiving their salaries in stablecoins, and internal communication channels were shut in order to quell discontent.
In addition to the layoffs and salary changes, customers of the exchange have been pulling their funds from Huobi due to their concerns about the security of their investments. The exchange has seen a 23% drop in volume since the news broke. Furthermore, Huobi’s native token, Huobi Token (HT), has fallen 10%, which is a worrying sign for its investors.
Huobi was already facing criticism in the past due to reports that it relies heavily on its native token to denominate its reserves. Now, with the layoffs, salary changes and customers withdrawing their funds, investors should be wary of the exchange and withdraw their funds until the situation is resolved.
The events of the past year have shown that the crypto industry is prone to scams and security breaches, and investors should take the necessary steps to protect their investments. While there is no concrete evidence of any wrongdoing at Huobi, investors would be wise to be cautious and withdraw their funds until the dust settles.
Overall, Huobi is facing an uncertain future as reports of layoffs, salary changes, and customer withdrawals start to circulate. While there is no concrete evidence of any wrongdoing, investors should take the necessary steps to protect their investments and withdraw their funds until the situation is resolved.