Huobi, a crypto exchange, is planning to go through a structural adjustment led by Tron founder Justin Sun. Sun, who is a member of Huobi’s global advisory board, confirmed to Reuters that the process has not started yet but is expected to be finished by the first quarter. This adjustment will involve the layoff of approximately 20% of Huobi’s staff. It is unknown at this time what other changes the exchange will go through as a result of this adjustment.
The layoffs come against the broader backdrop of concerns about reserves and solvency at various cryptocurrency exchanges and lenders after the collapse of FTX and a series of other bankruptcies last year. Cryptocurrency firm Genesis just cut 30% of its workforce in a second round of layoffs in less than six months.
Justin Sun’s recent restructuring of Huobi exchange has been viewed as a necessary move as he promises long-term advantages for the exchange. The details of the restructuring remain unclear, and it is unknown how many staff members Huobi currently has. Regardless, Sun insists that the short-term pains of the reorganization will eventually lead to more great things for the exchange.
The Huobi token, as per CoinMarketCap, has seen a significant change in price and volume since late October. The token’s price peaked at $9.40 with a 24-hour volume of $52.5 million. However, as of Friday its price had plummeted to $4.50, with a volume of only $18.50 million. Such a drastic change in such a short amount of time is a worrying sign for investors and the future of the Huobi token.