Journalist Colin Wu, citing sources, reported the resignation of Huobi’s CEO and CFO. According to him, large-scale layoffs at the company are not ruled out.
According to people familiar with the huobi, the former CEO and CFO of Huobi have resigned. Justin Sun’s TRON team has taken over important departments of Huobi. Huobi has 1,600 employees, Justin Sun believes that there are too many people, and there may be large-scale layoffs. https://t.co/bdMqeYPCrE
— Wu Blockchain (@WuBlockchain) October 29, 2022
The team led by the founder of the Tron Foundation says it has already gained operational control over the platform, Wu asserts. Justin Sun himself is convinced that there are "too many specialists" employed at the company.
Representatives of the exchange told ForkLog that Wu’s information was incorrect:
"The senior management of Huobi Global is carrying out its duties in the ordinary course of business, and rumours of large-scale layoffs are not true."
The company added that the new shareholders had completed the capital infusion, and Huobi would continue to "develop international markets and hire local staff".
The journalist also noted the loss of the HUSD peg to the US dollar. This occurred after announcements of the termination of support for the token and the transfer of user assets into USDT. At the same time, the platform began promoting the curated algorithmic stablecoin USDD.
After Huobi abandoned the original stablecoin HUSD and started using Justin Sun’s USDD, the current HUSD de-pegged and the price is only $0.74, the 24-hour transaction volume is only $210,000. Huobi said it can help users convert HUSD to USDT. https://t.co/aYakOkKbuQ
— Wu Blockchain (@WuBlockchain) October 31, 2022
According to CoinGecko, at the time of writing the HUSD price had fallen 60% to $0.31.
Following the update, in October Huobi Global agreed to sell a controlling stake in the Hong Kong-based investment company About Capital Management.
Wu named Sana as the beneficiary of the deal. Sana himself rejected such speculation and explained that he had joined the exchange’s advisory board.
Subsequently, the founder of the Tron Foundation stated that he is a substantial holder of Huobi’s own tokens.
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