A saying ‘hope for the best and prepare for the worst’ is applicable to one Chinese cryptocurrency exchange Huobi. Considering the market situation, the exchange is facing a critical situation.
Having the exchange is a profitable business that can make a considerable amount of money every month. However, many exchanges are laying off staff and getting ready for the worst situation (keeping in mind this current bear market).
Last year in December, news houses reported that exchanges like Huobi and the crypto mining machine producer named Bitmain Technology were cutting the numbers of workers. However, Huobi did not disclose a lot on its future plans.
The CEO of Huobi Global, Livio Weng Xiaoqi, stated in a local Chinese media that the exchange is taking steps in a careful way. While disclosing the moves of exchanges in the media for the first time, CEO said that the company does not know how long the present bear market trend will last, however, the company thinks that it would have to struggle in order to survive. He further said that the company would have to plan in advance and spend money carefully.
Bitcoin market has fallen drastically from 2018 since its value hit the highest point in 2017 ($20,000). Due to this ever falling bitcoin market since over a year, the crypto exchanges and other crypto businesses are getting affected.
In spite of the fact that tIn spite of the fact that the experts and the companies are still pondering over the question of why the crypto market dived deep in 2018, Weng rightly pointed out the sentiment that no one is very certain when and how the market will recover.
Many crypto-related organizations a year ago intended to grow and go ahead concerning the positive movement of the market at that time. Then, the Bitcoin cost was around $10,000. Companies went wrong here.
Last year in December, Huobi Group stated that their decision of laying off staff was more about taking steps towards developing its core businesses. It’s been a harsh couple of months for crypto exchanges, and mostly, their workers. During the ending quarter of 2018 and the beginning of this year, many crypto exchanges and blockchain-related organizations stated the very well expected laying off the staff.
Along with Bitmain and Huobi, other prominent crypto organizations like Shapeshift, Coinfloor, and Steemit, reported redundancies. Coinfloor had been operating in London from 2013 and had around 40 employees. The company cut their employees in October 2018 and said the reductions were a “reaction to a changing business sector condition.”
Last week, the ShapeShift announced that it would cut the workforce by 30% to fight against the continuous bear market trend.