Huobi Exchange to lay off 20% Manpower

In the last quarter of 2022, we have seen some layoffs by the cryptocurrency exchanges but it's not ended yet. It seems that the year 2022 is also going to start with further layoffs by the exchange. It's because of the bear market due to which the trading volume has gone down.

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Huobi plans to layoff

Huobi has been in the news this week after the pi coin listing and now they are planning to lay off 20% of their staff. Justin sun has recently acquired the exchange and he has given the update for this manpower layoff. It happens often in the cryptocurrency market when the market is good then they generate a lot of employment but when it's bear then they also reduce the headcount.

This time the bear market can stay longer as per many experts in the market. Usually when the bull market is long then the bear trend is even longer and that's why it's difficult to predict if this is going to end in 2023. The year 2022 was for bear sentiment and even we have seen bigger crashes in prices. Bitcoin prices are hovering around the 16-17k USD price range but if there is another negative news then we can see it below 15k.

The layoffs come against the broader backdrop of concerns about reserves and solvency at various cryptocurrency exchanges and lenders after the collapse of FTX and a series of other bankruptcies last year. Cryptocurrency firm Genesis just cut 30% of its workforce in a second round of layoffs in less than six months.

The cryptocurrency industry has been struggling because of the proof of reserve and audit reports as needed to gain the trust of the community. Some exchanges are not following fair practices with the user funds and this has affected in a loss to many users.

FTX was a leading exchange and with that crash and how things turned out, it seems many other names can be revealed. It's sad for the people who are going to be jobless now when the covid is also affecting some countries again. It may be tough for many to get another job but that is how it is.

In India, exchanges are somehow managing and they have not started the layoffs yet. The situation has not been good here after the TDS implementation but if this continues for a long then probably we can see this type of update from Indian exchanges as well. I just hope that by the time they reach that mark, the market show some positive sentiment so that people are not affected by their employment.

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