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Crypto exchange Huobi achieves profitability in the first quarter following restructuring efforts.
In a tweet dated April 10, Justin Sun — the effective owner of the cryptocurrency exchange Huobi Global — reported that Huobi generated $150 million in revenue during the first quarter of 2023, against $120 million in expenses, leading to a net profit of $30 million. Sun mentioned that “numerous initiatives were implemented to cut costs and enhance efficiency” throughout the quarter. For the second quarter of 2023, he anticipates that the exchange will achieve $187 million in revenue and incur $76 million in expenses, resulting in a net income of $110 million.
Huobi was among the largest cryptocurrency exchanges by trading volume until it began off-boarding its mainland Chinese users in 2021. Its market share subsequently declined from 19% in 2020 to an estimated 2.2% in the fourth quarter of 2022. Sun, who identifies as an “adviser” at Huobi Global, reportedly acquired 100% of the exchange’s stake from its co-founders in November 2022 through his entity, About Capital.
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Earlier this year, Huobi Global reportedly reduced its workforce by 20% and cut employee benefits as part of its restructuring efforts. A significant event occurred on March 10 when the exchange’s native token, Huobi Token (HT), experienced a flash crash that resulted in a price drop of over 90% within hours.
The token has since regained most of its losses; however, one prominent user, known by the Twitter handle Lantian666, claims to have incurred a loss of $4 million due to margin liquidations on HT during the flash crash. Lantian666 stated that they have not yet received full compensation from Huobi following the incident, despite Sun’s assertions that all users affected by the crash would be reimbursed.
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
Magazine: Zhu Su’s exchange did $13.64 in volume akshually, Huobi in crisis: Asia Express
