the The bear market makes Huobi to create. A report by the South China Morning Post, the Singapore struggles of crypto-exchange with existential economic problems. First employees have already suffered layoffs.

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24. January 2019BTC$3.552,41 -0.42%part Facebook Twitter LinkedIn xing mail

The bears sawing on the chair of Huobi. The Asian Bitcoin exchange, but it has not been easy. Already in the year 2017, the Exchange was forced to migrate from the Chinese mainland to the island of Singapore. Let us remember: In September the Chinese authorities to ban the trade with crypto currencies such as Bitcoin. At that time, the stock market was still the largest of its kind in the world. But that is a thing of the past.

Huobi must be told to tighten the belt

As Huobis CEO Livio Weng Xiaoqi in an Interview with the South China Morning Post (SCMP), has to fight the company, in the meantime, with serious economic problems.

“We don’t know how long the bear market lasts, so it is still possible that we will have to fight for Survival,” said Weng during an interview in his Beijing office. “We need to plan in advance, and the money carefully spend.”

The bear market is to blame for the misery. This is not surprising, after all crypto exchanges to generate the main part of their revenue with transaction fees that they charge for trading activities of their clients.

the trade volume, the Exchanges less in fees. In this case, the suffering of employees: Similarly, as in the case of Bitmain, have also Huobi of a part of its employees. This is the CEO Weng, the only way for the Exchange to be able to continue to profitably operate.

also Read: the Altcoin-market analysis KW48 – Bitcoin Cash continues to decline, with Litecoin, in comparison at least like

Futures platform launched successfully

Meanwhile, Huobi don’t stick your head in the Sand. With the Launch of a platform for crypto-Futures the company enters into direct competition with heavyweights such as OKEx and BitMEX. The SCMP report noted that investors put on the new platform alone in December, $ 20 billion.

the Benefit of the Exchange is likely to come, however, its international orientation:

“Our biggest advantage over competitors is that we have licenses in all of the major countries,”

said Weng, compared to the SCMP. A silver lining on the horizon.