Huobi, a cryptocurrency exchange, has announced that it will reduce its workforce by 20%. This is after Justin Sun initially disputed news of layoffs.
Huobi’s exchange token and trading volume have suffered as a result of reports that the company is drastically slashing manpower. The company is compelling employees to accept their salary in stablecoins. By doing so, this will shut off internal staff communication channels to put down a rebellion.
Huobi adviser Justin Sun, who has been publicly speaking on behalf of the company, denied there would be any layoffs in an interview. However, the company has since reversed its position, with a Huobi representative confirming the exchange’s plans to cut headcount by 20%.
Huobi changed its payment medium from fiat to USDC and USDT stablecoins, according to WuBlockchain. According to the report, the exchange intends to fire employees who disagree with the new policy, sparking worker protests.
According to Twitter reports, the company is also experiencing internal strife. Cryptadamus claimed that the exchange had resulted in the shutdown of all internal messaging channels between employees in order to quell the protest.
#Huobi seems to be melting down in real time, possibly along with His Excellency #JustinSun's fortune…
Shut down all intra-employee IMs etc, maybe fired a bunch of people. Employees now angry (or Sun is ruggin') @HuobiGlobal @justinsuntron https://t.co/0PGGHKtX8D pic.twitter.com/VioEzdRwVo
— ⚯ M Cryptadamus ⚯ | @cryptadamist@universeodon.com (@Cryptadamist) January 5, 2023
There are also fears that the employees’ dissatisfaction will cause problems for Huobi, as they may develop a backdoor to rug pull assets. To avoid exploits, BitRun advised those with assets on the platform to withdraw them and those without assets to uninstall the app.
Meanwhile, Huobi adviser Justin Sun has withdrawn $1.5 billion in stablecoins since October 2022.
Huobi’s Future Is in Doubt as Harsh Layoff Allegations Are Denied
Despite a Huobi counsel rejecting the reports, the community has advised users to remove funds. In response to rumors, the cryptocurrency exchange Huobi has fired personnel and shut off internal communications.
Huobi advisor Justin Sun refuted reports of alleged insolvency in a tweet on January 5. He stated that the exchange’s business development was excellent and that “security of customers’ assets will always be fully maintained.”
Sun also appeared to dismiss rumors of unsatisfied employees. He declaring that Huobi will completely respect the legal needs of local employees.
Earlier, on January 3, cryptocurrency journalist Colin Wu revealed that Sun switched the salary of Huobi employees from being paid in fiat to either Tether or cryptocurrency. Wu asserted that employees who objected to the adjustment might be fired.
Justin Sun's HR is communicating with all Huobi employees to change the salary form from fiat currency to USDT/USDC; employees who cannot accept it may be dismissed. The move sparked protests from some employees. Exclusive https://t.co/QB4sjDyHc7
— Wu Blockchain (@WuBlockchain) January 4, 2023
Wu stated in December, citing insiders, that Huobi had cancelled year-end bonuses and was getting ready to lay off as many as half of its 1,200 employees.
Some employees protested the decision to switch the salary payment from currency to stablecoins, according to Wu.
The exchange’s communication group with internal staff were allegedly shut down. All contact and feedback channels with employees were restricted, according to a tweet from the BitRun account.
According to BitRun, the process is not protected by state regulations. Huobi personnel might directly take away user assets or programmers implant backdoor Trojan horses and stage a coup.
One Twitter user claimed Huobi looks to be melting down in real-time. As a result of the alarming warning and others advised users to withdraw money from the exchange as a result of the rumors.
If you are using Huobi
Do consider withdrawing assets till the FUD blows overSome rather negative sentiment and accusations are going around Twitter aimed against Huobi.
Unverified so do your own due diligence and risk management accordingly.
— RossStephenson.eth 🦇🔊 (@magicross7) January 6, 2023
Sun-Related Token Prices Fall
HT’s price has fallen by almost 6% in the previous day, to $4.509. The exchange trade volume has also decreased by 20% during this time.
In addition, TRX fell 8% to $0.05068. BitTorrent, Sun, and Just, as well as other digital assets down on average by 3%.
Additionally, USDD, the decentralized stablecoin issued by Tron, has once again lost its peg to the dollar and is currently trading for $0.978.
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