Huobi CEO on bear market: "It is still possible that we will struggle to survive"

22 Jan, 2019
by Ryan Boltman
News
Huobi CEO on bear market: It is still possible that we will struggle to survive

In a recent interview with Livio Weng Xiaoqi, SCMP interviewed the Huobi Global CEO on what keeps them going in a bear market, and how they plan to weather the rough times, should they continue. 

Huobi Global CEO Livio Weng Xiaoqi spoke to SCMP regarding their progress within the industry and how the continued bear market of 2018 has affected the company. 

Huobi is one of the top five biggest cryptocurrency exchanges in the world, with a focus on the Asian markets in particular. However, that does not mean the company has felt the crunch over the past several months. 

Read More: Huobi set to follow Bitmain with staff layoffs following extended bear market

Huobi has also had to face staff layoffs due to a massive decline in business income due to the decline in the crypto markets in 2018. Weng commented on the bear market stating “We do not know how long the bear market will last, so it is still possible that we will struggle to survive,” however insisting “We have to plan in advance and spend money carefully.”

Huobi currently still turns a monthly profit due to trading fees which are generated on the exchange. Huobi began to layoff staff in non-profit divisions, and focusing more on their exchange offering which generates a majority of the profits. 

Weng mentioned the shut down of their research facility in Shenzhen, which occupied 30 people working on research and app development for Huobi. Currently Huobi still maintains over 1,300 staff globally, with roughly 100 staff being released.

Read More: Chinese cryptocurrency exchange Huobi gets Japanese regulatory approval from FSA

Huobi continues to grow globally, following the recent news which saw Huobi Global attain Japanese regulatory approval to trade within the country. “Our greatest advantage over competitors is that we have licenses in all major countries – we are the only one among top global exchanges,” Weng said.

Weng believes Huobi has the ability to rival top exchange Binance, which is also seeing global expansion across Africa, and most recently into Europe. 

Read More: Newly-launched Binance Jersey to become major driving force for crypto in Europe

Weng ultimately believes the future of Huobi is bright, no matter how long the bear market is. Huobi appear to have taken Binance CEO Changpeng Zhao's sentiment to focus on building and growing their technology while the market is in a downturn, ultimately, their efforts could eventually open “a window of opportunity, another bull run, to pay off”

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Read more about: Huobi China

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