After a profitable first quarter of 2023, Huobi expects an even bigger net income of $110 million for the second quarter.
crypto exchange Huobi Reportedly made a cool $30 million in profits in the first quarter after restructuring. The Seychelles-based company’s return to profitability came after it cut its workforce and slashed employee benefits.
According to the actual owner of Huobi Global justin sun, the exchange had quarterly revenue of $150 million against $120 million in expenses. Sun further explained that Huobi “took a large number of measures to reduce costs and increase efficiency” in the first quarter. After a profitable outing, he estimated That the exchange will generate $110 million in net income for the second quarter of 2023. These estimates are based on Huobi achieving a whopping $187 million in revenue and reducing $76 million in expenses.
To stay competitive and profitable, Huobi laid off 20% of its workforce earlier this year and slashed employee benefits. In addition, the exchange changed the employment contracts of affected employees to “consultant contracts,” which were not protected by Chinese labor laws. Huobi executives reportedly banned messaging on all major employee chat groups.
Employees affected by Huobi’s restructuring plans have sought consultation in a labor dispute to protest some of the changes. For example, one aggrieved employee wrote:
“I love my company and my work; At the same time, I support all decisions that benefit the company, and I know that with the economy slowing down everywhere in the world, Huobi management staff must brace themselves, and I look forward to the year-end bonus. I can understand the shortage. That said, I cannot condone the unfair exchange of employment contracts. I will fight for this till the end.
Affected Huobi employees formed a 400-member strong “rights maintenance group” in light of the company’s actions.
Huobi Q1 Profit Welcomes Development as Harrowing Comes After Sustainable Period
Huobi Q1 2023 profit growth also comes after trying times for the popular crypto exchange. Huobi, once one of the largest exchanges by trading volume, experienced a user exodus in 2021. At the time, the company kept off-boarding mainland Chinese users, dropping its market share over a sustained period. Between the fourth quarter of 2020 and 2022, Huobi’s valuation dropped from 19% to just over 2%. Last November, Sun reportedly bought a 100% stake in Huobi from its co-founders through its entity About Capital last November. crypto entrepreneurs and tron The founder currently claims to be holding an “advisory” role to the exchange.
Huobi Token March Crash
Huobi suffered a major incident early last month when its native token Hindustan Times Experienced A flash crash. Although the event dragged HT’s value down by more than 90% within hours, the crypto has recovered most of its losses since then. As of press time, HT is changing hands at $3.65 and has traded between $3.58 and $3.69 over the past 24 hours. However, one prominent user claimed to have lost $4 million on Twitter due to margin liquidation during the flash crash. Furthermore, the user also revealed that he is yet to receive full compensation from Huobi despite such claims by Sun.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
More Read
Bitcoin Crypto Related Post
