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19/06/2019
Technology

Bear Market Tendency Makes Crypto Exchange Huobi Lay Off Staff

The Asian Crypto Exchange Huobi is being extra careful while spending money amidst the bear market tendency in the crypto market. It is more of a move to prepare oneself for the challenging times than due to any sudden downfall. Otherwise, the current status of the crypto exchange is very much profitable, and money is moving in every month.

According to the reports obtained from CCN, the crypto exchange is laying off its staff since last year December. Following a similar trajectory, another Chinese company- ‘Bitmain Technology (a crypto mining equipment manufacturers) has been laying off its staff as well. At that time, Huobi Group explained that the reason behind their decision, not any downturn, but it is rather an endeavor to streamline the company’s focus on two aspects, i.e. ‘core business’ and ‘emerging markets.’ Therefore, it should not be taken as any kind of redundancy. Although during December last year, Huobi was still comparatively quiet about its motives until now.

Recently South China Morning Post revealed that the Chief Executive of Huobi Livi Weng Xiaoqi told that the exchange is moving carefully and is preferring to stay prepared for any difficult times. During the interview he said,

“We do not know how long the bear market will last, so it is still possible that we will struggle to survive. We have to plan in advance and spend money carefully.”

The turbulence in the crypto market has been very dramatic. In 2017, when the Bitcoin rates were at their all-time high of 20K U.S. Dollars, after that point the market saw a massive downfall to 20 percent of its all-time high point. This naturally had a major impact on all the companies, start-ups, firms that revolve around the cryptocurrency related business axis. The last twelve months had been a hard master for many of the crypto exchanges.

Amidst several market predictions, deep analysis, the Chief Executive of Huobi thinks that it is quite difficult to predict the time and phase when the crypto market will start to recover. Evidently, there have been several businesses who started with big dreams to advance in the crypto world, who had to either simmer down to completely leave the arena. Several companies opened up with the bright-eyed promise of Bitcoin to stay at 10K U.S. Dollars rate, which unfortunately proved to be very dear.

The bear market shook several businesses and had brought about a difficult time for the employees. In retrospect, during the last quarter of last year, and right now at the beginning of 2019, there have been several reports about companies lay offing its employees. As a proof one may look at the recent layoffs by companies such as ‘Shapeshift,’ ‘Steemit,’ United Kingdom’s ‘Coinfloor’ etc.; announcing their redundancy plans.

The oldest UK crypto exchange- ‘Coinfloor’ has been in the game since 2013. Since then it had approx. 40 staff. By October last year, the redundancy resulted in its staff getting cut short to half. The company explained that this action was ‘response to the changing market environment.’

Recently in Jan itself, there was another redundancy news from ShapeShift Crypto Exchange. The company revealed that it is planning to cut short its staff by at least 30 percent. This is done to fight the bear market tendency’s effect on the company, explained ShapeShift Crypto Exchange. Erik Voorhees, the CEO of ShapeShift said that the redundancies have been taking place due to the company’s drastic exposure to crypto.

The bear market is forcing the crypto exchanges to narrow down and keep their heads down till the storm passes. Yes, this is a difficult phase going on for the exchanges, yet at the same time, it is even more troublesome for those working and earning their bread and butter from such exchanges.

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