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Over the last few days we have heard some rumblings going on that not all is well with Huobi. The latest is cutting 20% of the staff by changing their working conditions and contracts. This is in many ways is a forced laying off for the Chinese Head Quarters with a move to Singapore. Imagine having no year end bonus, removal of Chinese work insurance and having to go on a trial 3 month probation period. Apparently this is all trying to stop the exchange losing a reported $10 million per month.
The one common denominator which we all know too well is Justin Sun and imagine working for him. He took over Huobi in October last year via About Capital Management (HK) Co. Ltd which is owned by the Tron Foundation.
Sun has cashed out $1.1 billion in the last month and possibly this is to shore up Huobi if everyone withdraws their funds. Huobi was one of the central exchanges that had a question mark hanging over their head after the FTX fiasco. I don't blame anyone from getting their funds off as who would trust anything this guy says. Who can forget what he said to the Hive community with the words "do you want to f..k me" as we saw the real person and not this fake person wanting to be relevant and in the news every 5 minutes.
His USDD has not held it's peg for months now and reportedly had copied the UST set up so maybe the funds are there in case we see another death spiral. Crypto without a Justin Sun around would be a far better place as he is just super dodgy and one has to always look for angles on his next scam. Trust is a big thing in crypto and how can anyone trust a project he is involved with?
I use Huobi to purchase COTi otherwise have no dealings with them and would never have any stake on their platform. I had a $10 issue last month where a deposit disappeared and gave up after a week of back and forth emails with their "help team". This after I furnished them with all the proof from my side and then they wanted two videos over and above all the information supplied.
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like crypto is a steaming pile of turd with smoke pouring out if it. All the money is on the sidelines, nothing is going to happen until everything is flushed. Nothing is safe and its going to be grim for a long time.
Totally agree and we need to clear all the crap out before things improve.
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I've never held an account there, but it's not good news if we see more exchanges cash in on their users.
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No this is not good news and people should be very careful.
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I wonder which is better... Letting everything burn now and rebuilding or getting back up and taking the hits slowly?
If it is going to fail then I think taking the hits now is far better. The longer the projects carry on the more people that are going to get hurt.
I think it could very well be next but I think all of the centralized exchanges will be in danger. Nobody knows just how much exposure they had to FTX and whether or not they have enough funds to process all the withdrawals.
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With the company reportedly losing $10 million per month and making changes to the working conditions and contracts of its employees, including a 20% reduction in staff and the removal of Chinese work insurance, there is clearly something wrong somewhere.
Definitely, where there is Justin Sun, it is hard to avoid controversies.