On January 6th, Reuters released a report that the crypto exchange, Huobi, will be laying off 20% of their staff.
Earlier in the week, Justin Sun spoke with the South China Morning Post and dismissed these reports of layoffs as untrue rumors.
However, later in the day a spokesperson for Huobi confirmed the news that around 20% of the exchange's workforce will be cut.
“The planned layoff ratio is about 20%, but it is not implemented now. With the current state of the bear market, a very lean team will be maintained going forward. The personnel optimization aims to implement the brand strategy, optimize the structure, improve efficiency and return to the top three." - Huobi Spokesperson
The news of these massive layoffs have shaken the confidence of investors and caused an increase in customer withdrawals from Huobi.
Then almost immediately, Justin Sun deposited about $100 million worth of USDC and USDT into Huobi.
Some on Twitter have speculated that this injection of liquidity was due to increase in customer withdrawals.
This leads others to believe that Huobi is having difficulty with liquidity and could possible be struggling to survive during this bear season.
This tweet by @themlpx shows that Justin Sun withdrew $100 million in USDC and USDT from Binance and deposited the amounts into Huobi:
To me this is kind of odd, as this would imply that Huobi and Justin Sun's assets are one in the same.
If Justin Sun is indeed moving funds around and injecting them into Huobi to help with liquidity issues, I find this to be a huge concern.
Hopefully there is a reason for all of this and it is just FUD in the end.
How do you all feel about this news?
Do you think Huobi is experiencing liquidity issues or is this all FUD?
Or could you see Huobi being the next exchange to fall?
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