Cryptocurrency exchange Huobi has cut staff significantly, requiring employees to be paid in stablecoins and closing communication channels for internal staff to curb backlash. The information has been passed on, hurting Huobi’s proprietary token and trading volume.
According to data from CoinGecko, Huobi Token (HT) is down about 11% in 24 hours, near $4.67 as of the morning of January 6, East Asian time. It has fallen about 30% over the past month.
Huobi’s trading volume also fell 23% from $510 million to $395 million in the past 24 hours.
The news of layoffs and salaries being paid in stablecoins was initially reported by web media WuBlockchain. Employees who refuse to pay their salaries in stablecoins will be fired. Others on Twitter said they were barred from internal communication channels.
Huobi adviser Justin Sun denied the layoffs in an interview with the South China Morning Post (SCMP). A CoinDesk spokesperson did not respond to a request for comment.
There are also growing concerns about the content of Huobi’s reserves. According to a recent report from CryptoQuant, among major exchanges, Huobi has the highest percentage of proprietary tokens in its reserves, at around 40%.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜ Image: Justin Sun (CoinDesk), who became an advisor to Huobi in October 2022
｜Original: Huobi Exchange Token Down 11% on Reports of Layoffs, Internal Strife at Company