• Huobi’s native token HT has dropped by 30.4% in the past 30 days
• Reports suggest Huobi has shut down internal staff communication channels and is demanding employees take their salaries in stablecoins
• Chinese blogger Colin Wu has confirmed that the Huobi human resources department is asking employees to change their salary from cash to USD Coin (USDC) or Tether (USDT), with consequences for those who do not comply
The price of Huobi’s native token HT has seen a dramatic drop of 30.4% over the past 30 days, as reports emerge that the Seychelles-based exchange is experiencing financial difficulties. Crypto stats website CoinGecko has attributed the drop to reports of layoffs, and Huobi’s insistence that employees take their salaries in stablecoins instead of cash.
Chinese blogger Colin Wu has confirmed these reports, writing that the Huobi human resources department has communicated with employees, asking them to switch from cash to USD Coin (USDC) or Tether (USDT). Those who do not comply with the new instructions are liable for dismissal.
This news has sparked protests from some employees, as well as speculation about Huobi’s financial stability. Reports have suggested that the exchange is facing insolvency, though this has yet to be officially confirmed.
The drop in HT’s value is indicative of the larger market trend, with most major cryptocurrencies experiencing losses in recent weeks. However, the news that Huobi is experiencing financial difficulties has raised questions about the exchange’s future.
The situation presents a challenging dilemma for Huobi employees. While taking salaries in stablecoins could help to protect against the volatility of the crypto markets, it also means a loss of purchasing power as the price of these coins is likely to remain low.
For now, Huobi’s future remains uncertain. The exchange has yet to make an official statement about its financial situation or the reports of layoffs and potential insolvency. Until then, investors and employees alike will have to wait and see how the situation develops.