Huobi, A Cryptocurrency Exchange, Becomes Profitable In Q1 Following A Restructuring.

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Huobi

The trade for cryptocurrency allegedly turned a $30M revenue in the initial quarter of this year after reducing staff and benefits.

Huobi had $150M in sales during the initial quarter of 2023, compared to $120M in expenses, for a net profit of $30M, according to a tweet from owner Justin Sun on April 10. Sun said that during the quarter that a considerable number of actions were implemented to decrease expenses and boost efficiency. He predicted that the trade will generate $187M in profit, $76M in costs, and $110M worth of net profit for the second quarter of 2023.

Huobi On “Restructuring” Its Losses

Up to the start of leaving its users behind from mainland of China in 2021, it was one of the biggest cryptocurrency exchanges by volume.

Huobi Global allegedly reduced employment perks and drop about 20% of the company’s workforce at the beginning of this year due to its efforts of reconstruction. On 10th March, a significant occurrence happened when Huobi Tokens dropped $3.72, the exchange’s native token, which had a flash collapse that caused its price to fall by above  90% in a matter of hours.

Nevertheless, one significant user, whose Twitter name is Lantian666, has claimed to have made a loss of $4 million as a result of liquidations of margins on HT amid the sudden collapse. The token has now regained most of its losses. Despite statements from Justin that all customers affected by the collapse will receive compensation, it has been said by Lantian666 that they had not yet received their full reimbursement from Huobi. 

The company was recently in the news as Justin Sun, the owner expressed his interest to make Binance with his Huobi stakes, which were rejected by the company. It had been claimed that Binance was uninterested because of claims that Huobi had connections to mainland China, and Binance does not want to be associated with it.