As concerns about the health of Huobi grow in the market, exchange volume has decreased by 23%
Huobi’s exchange token and trading volume have been negatively impacted by reports that the company is drastically cutting staff, requiring employees to pay in stablecoins, and closing internal communication channels to quell a rebellion.
According to data compiled by CoinGecko, Huobi’s HT token has lost nearly 11% in the last 24 hours, reaching $4.67 as of early morning East Asian time. Over the past month, the token has lost nearly 30% of its value.
The exchange’s measurement of normalized volume has decreased by 23% in the last 24 hours, from $510 million to $395 million.
Colin Wu of WuBlockchain first reported the layoffs and salary requirement for stablecoins. Employees’ concerns were stoked when WuBlockchain reported that those who refused to accept being paid in crypto would be fired. On Twitter, other individuals stated that employees had been prevented from using internal communication channels.
Sun has denied the Huobi layoffs in an interview with the SCMP in Hong Kong.
After FTX, there has also been more concern about Huobi’s reserves’ quality. According to a recent report from CryptoQuant, Huobi uses its own token the most frequently to redeem its reserves. Other than its token, about 60% of its reserves are based on other things. According to CryptoQuant, OKX and Derebit have the “cleanest” reserves out of all the exchanges, with 100%.