Major Crypto Exchange Huobi To Cut Staff, Will Other Startups Follow Suit?
imitive partner noted that to choose who to fire, Huobi created an “exam,” which is purportedly composed of 2,000 questions about the crypto industry and the firm’s business strategies and offerings. Those who scored the lowest were more likely to get cut. Although Wan wasn’t able to divulge the extent of Huobi’s layoff, she noted that it was a “high % headcount cut,” likely near or on par with Bitmain’s purported purge of ~50% of its 2,000+ staffers.
Interestingly, not three months ago, the Asia-centric platform announced an ambitious expansion plan. As reported by NewsBTC previously, Huobi launched a regional subsidiary dubbed Mena, which has set up shop in the desert oasis city of Dubai. It was explained that Mena has intentions to become Huobi’s hub for retail and institutional expansions into the Middle East, Africa, and much of Southern Asia. And just two weeks prior to this announcement, the startup was revealed to have moved one step closer to launching its own blockchain.
For now, however, it remains to be seen whether Huobi will be pushing ahead with its initiatives, which will put the company on the map across the globe, not just in Asia.
Not The First Case, Nor The Last
Although it seems nearly every crypto startup has announced cuts, including a 15-man layoff at the $8 billion powerhouse that is Coinbase, some fear that this is only the beginning. Wan referred these fears herself when she wrote that “we will see more [layoffs] coming up into 2019, especially after the holiday when the employment/HR cycle kicks in.” This is, of course, in reference to the fact that purging staff in the holiday season is taboo, and shouldn’t be done out of etiquette and human decency.
Regardless, the bottom line is that if cryptocurrencies continue to not undergo a notable recovery, the startups running this ecosystem will likely continue to reel in bear market-induced pains. And if sufficient financial runways aren’t established, even this industry’s leading startups will begin to show overt signs of distress, as made apparent by Bitmain’s and ConsenSys‘ cases.
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