Huobi Sees 61 Million In Net Outlows In One Day

Huobi Global sees $60.9 million worth net outflows in just one day. The withdrawals surged after unconfirmed reports of Huobi laying off employees surfaced on social media. Today, Justin Sun confirmed that Huobi will be laying off 20% of its staff.

Top withdrawals from Huobi are mainly in USDT, USDC, ETH from wallets with high balances.

Reports of internal conflict at Huobi surface

Earlier today reports of internal strife at the Chinese crypto exchange surfaced on Twitter. Huobi reportedly blocked internal communication groups to curb rebellion. Later, Justin Sun confirmed to Reuters that Huobi will lay off 20% of its staff.

Blockchain analytics firm Nansen reported that $60.9 million of the $94.2 million net outflow in the past week occurred in the past day alone. The news of massive withdrawals also coincided with Silvergate Capital’s shares tanking last night. Silvergate Capital had massive exposure to FTX and had to sell $5.2 billion of debt securities at a $718 million loss to enable withdrawals.

In the past 24 hours, Huobi has seen a significant increase in net outflows

$60.9M* of the $94.2M* net outflow in the past week occurred in the past day alone

*Contains Ethereum, Avalanche, BNB Chain, Fantom, & Polygon flows pic.twitter.com/JV1Tg13QMY

— Nansen 🧭 (@nansen_ai) January 6, 2023

Justin Sun tries to reassure customers

After news of Huobi laying off 20% of its staff broke, Justin Sun took to twitter to reassure the customers about the exchange’s future. Sun tweeted that as a leading cryptocurrency exchange, their strategy is to stay focused on the long-term and not get swayed by short-term distractions. In an attempt to reassure investors, Justin said they are heavily investing in technology to provide a trusted and reliable platform to their customers.

Justin Sun’s Tron’s stablecoin USDD also started to depeg today as it reached as low as $0.9754. Huobi Token also fell as much as 12% today.

In conclusion, at Huobi, our strategy is to “Ignore FUD and Keep Building.” By staying true to our mission, investing in technology and security, listening to our users, we’re able to provide a trusted and reliable platform for our users to buy, sell, and trade cryptocurrency.

— H.E. Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) January 6, 2023

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working with different major media houses. His current role at Coingape includes creating high-impact web stories under tight deadlines. When not working, you’ll find him reading Russian literature or watching some Swedish movie.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.