Crypto exchange Huobi returns to profitability in Q1 after restructuring
After cutting employees and benefits, the cryptocurrency exchange reportedly made a $30 million profit during the first quarter of 2023.
According to an April 10 tweet by Justin Sun — the de facto owner of cryptocurrency exchange Huobi Global — Huobi saw $150 million in revenue during Q1 2023 compared with $120 million in expenditures, resulting in a net income of $30 million. Sun said that “a large number of measures were taken to reduce costs and increase efficiency” during the quarter. For Q2 2023, he projected the exchange will bring $187 million in revenue and $76 million in expenses, with a net income of $110 million.
Huobi was one of the largest cryptocurrency exchanges by volume until the off-boarding of its mainland Chinese users began in 2021. Its market share subsequently fell from 19% in 2020 to an estimated 2.2% in Q4 2022. Sun, who claims to be an “adviser” at Huobi Global, reportedly purchased 100% of the exchange’s stake from its co-founders in November 2022 through his entity About Capital.
Earlier this year, Huobi Global reportedly laid off 20% of its employees and slashed employment benefits as part of restructuring efforts. A major incident occurred on March 10 when the exchange’s native token, Huobi Token (HT), suffered a flash crash leading to a more than 90% drop in its price within hours.
The token has since recovered most of its losses; however, one major user, who goes by the Twitter handle Lantian666, claims to have lost $4 million due to margin liquidations on HT during the flash crash. Lantian666 said they have yet to receive full compensation from Huobi as a result of the incident despite claims from Sun that all users impacted by the crash would be compensated.
Dear colleagues in the crypto circle, I am the owner of the account that was forcefully liquidated for 4 million dollars on March 10th at 5:00 am by the Huobi platform’s HT pin liquidation. I will continue to share all the details and what Huobi did at that time #ShameonHuobi pic.twitter.com/HzDf7xE2Gv
— nnn (@lantian6666) March 26, 2023
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