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Uncovering the FUD surrounding Huobi; Should you be worried?

Huobi

TL;DR Breakdown

  • Huobi has been the subject of rampant FUD recently due to reports of it cutting down its workforce.
  • The price of all the cryptocurrencies associated with Justin Sun and Huobi have been performing poorly.

Due to the numerous controversies that have recently surrounded it, the cryptocurrency exchange Huobi Global has been receiving a lot of media attention. Let’s uncover what precisely has been going on and then we can discuss whether or not you should be concerned about it.

To begin, there were reports circulating that Huobi was going to fire twenty percent of its workers, which the company’s adviser, Justin Sun, first officially refuted. Afterward, a representative from Huobi said unequivocally that the rumor was in fact accurate.

With the current state of the bear market, a very lean team will be maintained going forward.

Huobi Spokesperson Kate Li

A blockchain writer by the name of Colin Wu revealed on the 30th of December, citing anonymous sources, that Huobi had canceled its year-end bonuses and was getting ready to lay off up to 500 of its 1,200 employees.

According to Wu, the decision to shift the payment of salaries from fiat currency to stablecoins was met with resistance from a number of the company’s workers.

The cryptocurrency writer also stated on January 3 that Sun has modified the way staff wages at Huobi are paid such that they are now either compensated in USDT or USDC rather than fiat currency.

Wu said that the employees on staff who were opposed to the move may be terminated. Because Wu has previously published exclusive pieces on the exchange and Sun, and because Sun follows Wu’s page on Twitter, people are prone to take the information he provides seriously.

A number of individuals on crypto Twitter are of the opinion that Huobi seems to be collapsing, while others are recommending that customers remove their assets from the exchange as a result of the rumors.

Huobi Token, USDD, and TRON have all been performing poorly

The fact that the prices of all tokens affiliated with Sun and Huobi have just taken a nosedive does not help things. On its weekly chart, the value of Huobi Token (HT) has decreased by more than 12%.

The stablecoin known as USDD developed by Sun has decoupled itself from the US dollar. Over the previous twenty-four hours, the value of TRON (TRX) has likewise decreased by around 8%.

The community’s feelings of fear, uncertainty, and doubt are, without a doubt, justified. And users definitely need to consider withdrawing their money from Huobi and selling any holdings they have in the aforementioned tokens as soon as possible.

With the failure of multiple cryptocurrency exchanges throughout the course of the previous year, which, if we are being completely honest, began off like this, we have another cause for the widespread prevalence of the Huobi FUD.

It is not possible for us to state with absolute certainty whether or not the exchange will collapse. Our only hope is that it will prevail during these trying times.

If another crypto powerhouse were to fail, it would be very difficult for the sector to survive it. It has already been through so much.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

Jai Hamid

Jai Hamid

Jai Hamid is an enthusiastic writer whose current area of interest is the blockchain sector. Whenever she is not reading or writing, you can find her tending to her plants in the garden. She strongly believes that crypto is going to transform the world for the better.

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