Huobi Witnesses $61 Million Net Outflows in 24 Hours

  • Justin Sun said that 20% of Huobi’s workforce will be terminated.
  • There was a depeg today in Justin Sun’s Tron’s USDD stablecoin.

Net withdrawals from Huobi Global were $60.9 million in under 24 hours. An increase in withdrawals was seen when rumors on social media circulated that Huobi was firing off personnel. Today, Justin Sun said that 20% of Huobi’s workforce will be terminated. Large amounts of USDT, USDC, and ETH are the most popular cryptocurrencies for withdrawal from Huobi.

Earlier today, Twitter rumors of turmoil inside the Chinese cryptocurrency exchange began to circulate. According to reports, Huobi shut off internal messaging services in an effort to quell a mutiny. As Reuters reported later, Justin Sun stated that 20% of Huobi’s workforce will be let go.

Justin Sun Assures Community

According to Nansen, a blockchain analytics company, $60.9 million (or 69% of the weekly total of $94.2 million) net outflow has happened only today. Silvergate Capital’s stock price plummeted yesterday with reports of heavy redemptions. As a result of its substantial exposure to FTX, Silvergate Capital was forced to sell $5.2 billion in debt instruments at a loss of $718 million before it could start withdrawals.

Huobi’s CEO Justin Sun turned to Twitter when the rumor of 20% layoffs spread to reassure the company’s clientele. Sun stated that the objective of the major cryptocurrency exchange is to maintain a long-term focus without being derailed by short-term considerations. Justin tried to reassure financiers by saying the company was spending extensively on technology in order to deliver a secure and dependable service to its users.

There was a similar depeg today in Justin Sun’s Tron’s USDD stablecoin, which dropped to a low of $0.9754. As much as 12% of Huobi Token fell today.

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