Withdrawals increased after social media reports of Huobi terminating employees. Justin Sun announced today that 20% of Huobi's staff will be laid off.
Nansen, a blockchain analytics startup, said that $60.9 million of the $94.2 million net outflow from the previous week occurred in one day.
After unverified claims of Huobi firing employees appeared on social media, withdrawals spiked. Justin Sun today revealed that 20% of Huobi's workforce will be laid off.
Most popular currencies for withdrawals from Huobi are USDT, USDC, and ETH from wallets with large balances.
On Twitter earlier today, rumours of internal conflict at the Chinese cryptocurrency exchange arose. To quell unrest, Huobi reportedly banned internal communication groups. Later, Justin Sun told Reuters that Huobi will be firing 20% of its workforce.
According to blockchain analytics company Nansen, $60.9 million of the $94.2 million net outflow during the previous week occurred in just the previous day. Along with the news of the large withdrawals, Silvergate Capital's stock fell last night. Due to its significant exposure to FTX, Silvergate Capital was forced to sell $5.2 billion in debt instruments at a $718 million loss in order to fund withdrawals.
Huobi clients were reassured about the exchange's future by Justin Sun on Twitter after it was announced that 20% of its personnel would be laid off. Sun stated in a tweet that one of the main cryptocurrency exchanges' strategies is to avoid being distracted by short-term issues and to maintain long-term focus. Justin stated they are heavily investing in technology to give their clients a trusted and dependable platform in an effort to reassure investors.
Today, the USDD stablecoin created by Justin Sun for Tron also began to depreciate, falling as low as $0.9744. Huobi Token also experienced a 12% decline today.
