The value of Huobi’s original token has shot up around 18% in recent trading, following the news of new investments in the Seychelles-based crypto exchange.
Huobi’s founder Leon Li Lin recently sold his stake in the company to About Capital, a Hong Kong-based asset management firm, which was accompanied by the promise of more investment.
In accordance a blog post On the company’s website, the move will see Huobi receive an “adequate” capital injection into the margin and risk provision fund, as well as a global strategic advisory board, along with “leading industry figures.”
The acquisition will also reportedly see the company undergo a “series of new international brand promotion and business expansion initiatives”, without any specific mention of what this entails.
Although the acquisition will mean that Leon Li Lin will lose control of the firm, the announcement maintained The move will have “no impact on Huobi’s core operations and business management.”
Despite not being available to users based in the US or China, Huobi remains one of the most popular cryptocurrency exchanges worldwide.
In accordance CoinGeckoHuobi is currently the eighth largest crypto exchange by 24-hour trading volume, with more than $465 million in normalized volume.
Huobi is preparing for the next chapter
About Capital was by no means the only party interested in acquiring Lin’s stake from him.
Recent reports suggest that FTX founder Sam Bankman-Fried and Tron founder Justin Sun were among the interested potential buyerswith the valuation for Li’s slice said to be between $2 billion to $3 billion.
Despite winning the interest of investors, not everything has been smooth sailing for the stock market in recent months.
HUSD, a stablecoin offered by the firm that is supposed to maintain parity with the US dollar, at one point fell almost 15% from its intended $1 peg. The company claimed that the problem was caused of “a short-term liquidity problem” due to “a time difference in banking hours,” rather than any deeper financial instability.
Huobi has also trimmed down the range of tokens it has on offer as part of plans to better fit into global regulatory frameworks. It declined to comment further on the reasons for the removals.
These tokens included Dash (DSH), Decred (DCR), Firo (FIRO), Monero (XMR), Verge (XVG), Zcash (ZEC), and Horizen (ZEN).
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.
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