• 23 July, 2024
News

What Exactly Is Going on in Huobi? – Sale Rumors and Poor Operating Conditions

Cryptocurrency exchange Huobi has been in the news lately due to rumors of a potential sale and poor operating conditions. According to Bloomberg, crypto entrepreneur Justin Sun has held talks about selling a stake in Huobi Global. While Sun denies the claims, it has been reported that he has been sounding out potential investors in recent weeks.

It is unclear what valuation Sun is seeking for the company or what size of a stake is being offered. However, these conversations are said to be in the early stages, and it is not yet known if any of the investors are willing to move forward with the purchase.

Sun’s involvement with Huobi has been shrouded in mystery, and he has called himself an “adviser” to the company. He has also used around $200 million of his own wealth to help prop up the company since January. Bloomberg News previously reported that Sun paid approximately $1 billion to acquire a controlling stake in Huobi through About Capital, a Hong Kong-based asset manager. However, Sun denies owning the majority stake in the company.

Despite the rumors of a sale, both Sun and a Huobi spokesperson have denied seeking a new owner for the company. Sun has previously said that he became an adviser to Huobi after amassing a large position in its native token, HT.

Huobi was founded in China almost a decade ago and saw its market share decline from almost 22% in 2020 to just 4% last year. This drop was due to the Chinese government’s ban on cryptocurrency trading within its borders. After the ban, Huobi moved most of its operations to Singapore and Hong Kong.

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