The exchange's 24-hour trading volume has dropped by more than 20%.
Sun has reportedly fired several employees, though he has disputed these claims.
TRX and HT tokens are both down, with the USDD stablecoin losing its peg.
Huobi Global is seeing a significant decline in trading volumes after reports of a meltdown. The exchange's 24-hour trading volume fell by more than 22%, falling from almost $1.6 billion to $1.23 billion at press time.
On January 5, Huobi advisor Justin Sun, a well-known and controversial personality in the crypto industry, tweeted about the company's financial state. He said,
“Recent business development momentum has been positive, key indicators have been strong, and the average daily growth rate of newly registered users and capital inflows has surpassed the peak in 2022.”
He went on to say that the network is safe and that Huobi will prioritize worldwide compliance. Some questioned these claims, claiming that the exchange and USDD were collapsing.
There is currently a lot of outrage taking place in the Huobi and TRON communities. Insiders claim a crisis has occurred and that Sun has fired several employees. As per reports, Chinese Telegram channels are flooded with messages of everything falling apart quickly.
Reports noted that Sun is attempting to change the salary of Huobi employees from fiat to USDT or USDC. As a result, employees are reportedly protesting. Wu asserted that Huobi will also deregister completely as a domestic firm, and employees will be required to sign agreements with foreign entities.
In addition, Sun has received $626 million in USDC and $501 million in BUSD. Concerns are being raised when the USDD stablecoin loses its peg once again.
TRX has fallen 7.12% in the last 24 hours, while HT has fallen 2%. The news of layoffs and other internal adjustments has created a sharp decline in prices. However, Sun has denied that no layoffs have taken place.
The USDD token also lost its peg and is currently trading at $0.98. The token has depegged previously as well, and there have been concerns that USDD would follow in the footsteps of Terra's UST stablecoin.
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