Huobi Delists Multiple Tokens Due to Trading Risks
- Huobi claims some of the delisted tokens violated its management rules.
- Huobi recently announced plans to lay off 20% of its employees.
- Crypto journalist Justin Wu believes the exchange is facing internal issues that could put users at risk.
Crypto exchange Huobi announced on Wednesday that it would delist and cease trading 33 tokens, including ABT, ATP, APN, AST, DIE, DHT, DFA, EDEN, GEAR, HC, INDI, IOI, INV, IRIS, GCOIN, GOF, KMA, MTA, NAS, OPUL, PEARL, PRIMATE, QASH, SMT, SLC, SKU, SOC, STC, TALK, VALUE, WHALE, WILD and YAM. According to the announcement, the tokens will be delisted at 08:00 (UTC) on January 16th.
Huobi said the move was part of its “continuous efforts to promote the healthy development of the blockchain ecosystem.” Giving a reason for its action, Huobi explained that some of the projects violated Section 17, Rule 1, and Section 17, Rule 2 of the Huobi Token Management Rules. According to the rule,
Huobi reserves the right, based on the severity of the incident, to hide or cease trading in accordance with the following events: 1) [Tokens] Labeled with “ST” warning and not canceled within 30 days. 2) [Tokens] That do not meet the requirement of having $50,000 in daily trading volume.”
Huobi noted that deposits will no longer be available for the listed tokens, but withdrawals will be permitted. Users are also advised to cancel any open orders for the delisted tokens in a “timely manner.”
Huobi has been in the news in recent days due to growing doubts about its future. The exchange recently announced plans to commence a 20% layoff of its staff. However, the plan has not been implemented, but that has not stopped the crypto community from speculating about the company’s survival.
While representatives of the company have dismissed any warning about Huobi’s fitness, reports claim the company’s internal communications have been shut down, causing panic amongst users. Some experts have advised users to withdraw their funds from the exchange to avoid a repeat of the FTX story.
Crypto journalist Colin Wu has shared a series of details about the company’s operation based on an insider source. Wu claims several Huobi employees are disgruntled about some of the exchange’s policies, including paying salaries in cryptocurrencies and canceling bonuses. However, Huobi adviser Justin Sun dismissed such concerns, adding that Huobi “fully respect the legal demands of local employees.”
Wu claims Huobi plans to sack over 1,000 employees in 2023. While the rumors are largely unverified, users have been advised to source for safer alternatives.