Leon Li, the CEO of Huobi Stock Exchange, will sell his stake in the company, or 60% of the shares. A decision motivated by the difficulties the exchange has encountered following the bear market and cryptocurrency ban in China. Sam Bankman-Fried and Justin Sun would be among the potential buyers.
Huobi Global is navigating choppy waters
Leon Lithe founder of the stock exchange Huobiis currently in talks with various institutions and investors to achieve this sell his stake in the company, or 60% of the shares. According to Bloomberg, the transaction could raise Huobi’s valuation to $3 billion.
Leon Li’s intentions were briefly leaked in early July after the platform ran into serious trouble following her commitmentdiscontinue service for Chinese customers due to local regulations. Huobi would then have seen a significant drop in his income, which could also cause it Laid off 30% of its staff in Chinaaccording to the journalist Colin Wu (known as the Wu blockchain).
Sam Bankman Friedthe CEO of FTX, and justin sunthe founder of Tron (TRX), would be among the potential buyers. However, Justin Sun refuted the facts reported by Bloomberg.
We have not addressed any matters related to the Bloomberg story at this time.
– HE Justin Sun🌞🇬🇩 (@justinsuntron) August 12, 2022
On his side, Sam Bankman-Fried didn’t deny it. Such an acquisition on his part would make sense as he said last May that FTX could deploy “ Billions of dollars in acquisitions », whereby the treasury of the stock exchange is a priori in good shape. In addition, he has demonstrated the financial strength of his company by recently proposing the acquisition of Celsius Network and Voyager Digital.
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A sale is nearing completion
According to people familiar with the matter, who wished to remain anonymous, the sale of Leon Li’s shares could come into force by the end of August. Zhen Fund and Sequoia China2 of Huobi’s main supporters, have been informed of the founder’s decision at a meeting in July.
Leon Li is hoping for future buyers, according to a company spokesman, who said few details could be revealed at this time will manage to turn around the ailing stock market :
“He hopes that the new shareholders will be more powerful and resourceful, and will appreciate the Huobi brand and invest more capital and energy to boost Huobi’s growth.”
This transaction, which would generate a profit of around a billion dollars, would be theone of the greatest achievements in the history of cryptocurrencies.
Since the ban on cryptocurrencies in China, Huobi has notably extended to Dubai, New Zealand and plans to expand into the United States.
The exchange, which nevertheless remains one of the largest on the market, posts on average over $1 billion in trading volume daily. his mark, the HTobserved an increase of 25% after publication of the Bloomberg report. Its price today is $5.3.
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