Leon Li, the CEO of the Huobi exchange, will sell his stake in the company, or 60% of the shares. A decision motivated by the difficulties encountered by the exchange following the bear market and the banning of cryptocurrencies in China. Sam Bankman-Fried and Justin Sun would be among the potential buyers.
Huobi Global is navigating troubled waters
Leon Lithe founder of the exchange Huobiis currently in discussions with various institutions and investors in order to sell his stake in the company, or 60% of the shares. According to Bloomberg, the transaction could raise Huobi’s valuation to $3 billion.
Leon Li’s intentions had briefly leaked at the beginning of July, the platform having found itself in serious difficulty following its obligation tostop serving Chinese customers due to local regulations. Huobi would then have recorded a substantial drop in its income, which could also lead it to lay off 30% of its staff in Chinaaccording to the journalist Colin Wu (known as Wu Blockchain).
Sam Bankman-Friedthe CEO of FTX, and Justin Sunthe founder of tron (TRX), would be among the potential buyers. Justin Sun, however, refuted the facts reported by Bloomberg.
We have not engaged any matters related to the Bloomberg story at this moment.
— HE Justin Sun🌞🇬🇩 (@justinsuntron) August 12, 2022
On his side, Sam Bankman-Fried did not deny. Such an acquisition on his part would make sense, as he said last May that FTX could deploy “ billions of dollars of acquisition », the treasury of the exchange being a priori in good shape. He has moreover proved the financial capacities of his company by recently proposing the acquisition of Celsius Network and Voyager Digital.
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A sale soon to be finalized
According to people familiar with the matter who wished to remain anonymous, the sale of Leon Li’s shares could be effective by the end of August. Zhen Fund and Sequoia China2 of Huobi’s main backers, were notified of the founder’s decision at a meeting in July.
According to a company spokesperson, who said few details could be revealed at this time, Leon Li hopes future buyers will manage to turn around the ailing exchange :
“He hopes the new shareholders will be more powerful and resourceful, and will value the Huobi brand and invest more capital and energy to boost Huobi’s growth.” »
This transaction, which would generate a profit of around one billion dollars, would be theone of the largest achieved in the history of cryptocurrencies.
Since the ban on cryptocurrencies in China, Huobi has notably extended to Dubai, New Zealand and plans to expand to the United States.
The exchange, which nevertheless remains one of the largest on the market, posts on average over $1 billion in volume traded daily. His token, the HTobserved an increase of 25% after publication of the Bloomberg dispatch. Its price today is 5.3 dollars.
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