Huobi Global Crypto Company is Feeling the Bear Market Pinch in Latest Layoff of Australian Team Members
Bitcoin has been starting to pick up, but the momentum is too slow to suggest that the crypto industry is out of the bear market just yet. While there are some exchanges that have had to shut down all operations entirely, Huobi is showing that they will not go down without a fight. Unfortunately, some sacrifices must be made to stay afloat, like their recent layoffs and the shutdown of their Australian unit.
The Australian subsidiary of Huobi has only launched in the crypto market about 9 months ago, but an official tweet confirms the change. The tweet, directly from Huobi Australia, says,
“Please be informed that starting 26th February 2019, all operations, including the management of our platform, social media channels and customer support will be managed by our team at Huobi Global headquarters.”
Please be informed that starting 26th February 2019, all operations, including the management of our platform, social media channels and customer support will be managed by our team at Huobi Global headquarters. pic.twitter.com/JP1lInoblt
— HuobiAustralia (@HuobiAu) February 25, 2019
Huobi Global had previously said that the choice to move into Australia was a “natural fit.” Now, as they withdraw, the company announced,
“Please be informed that due to poor market conditions and associated recent staff redundancies here at Huobi Australia, all operations, including the management of our platform, social media channels and customer support will be managed by our team at Huobi Global headquarters starting 26th February 2019.”
Furthermore, the plans that the company formerly had to add a fiat currency on-ramp are now being delayed indefinitely, as they focus on their coin-coin setup. Since the only purpose of registering with the local regulator is for the use of fiat on-ramps, the company no longer intends to pursue that either.
Unfortunately, many platforms have been forced to make cuts to their own staff and even reduce their offices to stay active during the downward turn of the market. Coinsquare (Canadian exchange), Bitmain (mining company), ConsenSys (blockchain software firm) and Steemit (decentralized social network) have seen some of the most substantial cuts. Some have even partially shut down select operations over the last few months.
Even with all of this bad news for the market, Huobi Global has still claimed to see 100% growth in its trading volumes between 2017 and 2018. Furthermore, the company managed to go from 400 employees to over 1,300 employees from the beginning of 2018 to now.
At the end of the year, Huobi reported that they were planning to let go of employees that were not making the progress that their platform needs. However, they also planned to add new talent
“for its core businesses and emerging markets.”
Huobi is still functional in their regional operations concerning Japan, South Korea, and the United States, though Japan’s operations were relaunched with a fully licensed platform last month. This relaunch was due to a merger with BitTrade. Within the United States, Huobi was able to change their branding from HBUS to Huobi.com, and their fiat-to-crypto trading services have already been launched.
At this time, Huobi is considered to be the 5th largest exchange in the world, with about $957 million in trading volume in the last 24 hours.