Tron founder Justin Sun on Friday said the crypto exchange Huobi plans to layoff 20% of its staff. While advisor Justin Sun earlier denied rumors of layoffs, pay disputes, and conflict with employees, he asserts several “structural adjustment” has not started and is expected to be completed by the first quarter.
Justin Sun, who is a member of Huobi’s global advisory board, confirmed in a text message to Reuters that the crypto exchange is indeed planning to layoff employees.
In an internal notice to Huobi staff, Justin Sun said the crypto exchange has survived in the crypto winter. Moreover, Huobi had an average of 20,000 new users in the last three months.
The move comes as concerns about reserves and solvency at crypto exchanges mount following the collapse of FTX. Recently, crypto lender Genesis laid off 30% of its staff due to FTX contagion.
Justin Sun termed the restructuring as “short-term pains” that can eventually bring advantages to the exchange. As the news of tensions at Huobi reached investors, they started withdrawing their assets and selling crypto tokens related to Tron and Huobi.
Tron (TRX) price is currently trading at $0.05079, down 8% in the past 24 hours. USDD stablecoin also depegged against USD and currently trades at $0.979.
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