Two crypto firms — Genesis and Huobi — have caught the attention of the crypto community after reportedly deciding to shed their respective workforces. Genesis is a crypto lending platform while Huobi is a crypto exchange platform. Companies are apparently trying to cut costs around their operations amid the ongoing market slump. The overall situation of the crypto market, which has stuck to the global valuation of within US$820 billion (about Rs.67.76.234 billion) for weeks, showed no significant improvement in the first week of 2023.
In case of Huobi, its native HT token has fallen 11 percent over the past 24 hours and slipped 30 percent over the past month. According to a CoinDesk reportHuobi is terminating employees who have refused to collect salaries in its HT-owned coin.
Notably, Justin Sun, who TRON Founder and advisor to the stock exchange last year, has denied that Huobi wanted to lay off its employees South China tomorrow post said in his report.
However, it has been claimed on Twitter that the Seychelles-based crypto exchange is dealing with the impact of a plummeting market and has also halted internal communications.
To translate:
Rumors of problems with Huobi are rife on Japanese and Korean crypto twitter. They claim that internal communications have been shut down and major layoffs are imminent.
Justin Sun is at the center of these rumors as he took an active role in the company late last year. pic.twitter.com/KetFhHjcVT
— Stephen TCG | DeFi Dojo (@phtevenstrong) January 6, 2023
Hmmm….Huobi reportedly has some internal staff issues and #TRX began to nuclear …
Not a good day for good ol’ Justin… (who knows, maybe he’s the one to pay lol) pic.twitter.com/aMUrzOx2Qr
— Devchart :male-technologist::skin-tone-2: (@devchart) January 6, 2023
On December 15, Huobi recorded an inflow of $87.9 million. Since then, however, it has seen outflows totaling $204.65 million, with $75.1 million transacted in the last 24 hours alone pic.twitter.com/3ADObzSe5l
— DefiLlama.com (@DefiLlama) January 6, 2023
While clarity on Huobi’s situation is still awaited from top-level authorities, the market surges have destabilized the position of Genesis, a New York, US-based crypto lending company.
The company in November genesis had asked investors for a loan of US$1 billion (around Rs.8,263 billion) after the FTX crypto exchange went down.
In order to save his company from bankruptcy for the time being, Genesis laid off 30 percent of its workforce, leaving 60 employees to keep the company afloat.
Between 2021 and 2022, the entire crypto sector lost over US$2 trillion (approximately Rs.1.65.74.7 billion). The Russia-Ukraine war and the recession that followed COVID-19 pandemic, repeated hack attacksand the collapse of promising crypto projects like LUNA and FTX have greatly reduced investor exposure to the sector.
The industry could take a while to recover from the ongoing crypto winter, industry analysts have predicted.
Join us for the latest from the Consumer Electronics Show on Gadgets 360 CES 2023 hub.
