Hong Kong Based Asset Management Firm Buys Out Majority Stake in Crypto Exchange Huobi Global

Terms of trade are yet to be disclosed.
About Capital wants to expand Huobi’s global presence.

Change in ownership; teams remain unchanged

Chinese cryptocurrency exchange Huobi Global revealed in a blog post that the agreement to sell its ‘controlling stake’ to About Capital came through. About Capital is a Hong Kong based asset management company. Huobi founder Leon Li was the controlling stakeholder in Huobi.

Huobi Global was founded by Leon Li in 2013 in Beijing. It has a presence in over 100 countries. It is based in Seychelles and has offices in Japan, Hong Kong, South Korea and the United States.

According to the post, the transaction will only change the ownership of the controlling stake; and that the ‘core operations and business management teams’ remain unchanged.

“According to About Capital, post transaction Huobi Global will embrace a series of new international brand promotion and business expansion initiatives, including a global strategic advisory board led by leading industry figures, the injection of sufficient capital in margin and risk provision fund, as well as measures to further enhance competitiveness.”

The paper mentioned that upon completion of the transaction, Huobi will be able to provide ‘first-class trading and investment services to international investors.’

The deal comes months after Li announced plans to sell a majority stake in Huobi. Bloomberg had reported that Li wanted $1 billion for his 60% stake. However, details of the transaction have not been made public yet.

Huobi’s exit from the Chinese market

Huobi made an exit from the Chinese market in December 2021, after the Chinese government prohibited crypto trade and mining. According to Li, the deal will give impetus to the global push triggered by the departure from mainland China.

Chinese citizens who have not withdrawn their funds from Huobi yet, can contact Huobi and liquidate their money, according to the post.

On October 7th, Grovetoken ($GVR) was listed on Huobi. Grovetoken is built on Binance Smart Chain (BSC). Grove, a ‘green investment company’ has invested in Solar energy and Hydroponics farming. Grovetoken can be traded using GroveKeeper, the ‘first Green Wallet’ according to the GroveToken whitepaper.

Market reflected Huobi’s news

Immediately after the announcement was officially tweeted, the price of Huobi Token, Huobi Global’s native token, shot up significantly. Coinmarketcap data showed a jump of almost 5.3% in 30 minutes. However, the price was back touched pre announcement level after some time.

HT It is based on the Ethereum blockchain and is ERC-20 compliant. ERC-20 is a technical standard created for the Ethereum blockchain. ERC-20 compliant tokens are the same in terms of type and value.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing