How Chinese cryptocurrency exchange Huobi is weathering the prolonged bitcoin bear market

… of a bubble in initial coin offerings (ICOs), a largely unregulated crowdfunding method involving digital money, as well as the bitcoin cash “hard fork”, …

One year can make a lot of difference in the roller-coaster world of cryptocurrencies.

At the start of 2018, China’s Huobi Group offered one senior executive the highest year-end bonus of 300 bitcoin, worth around US$3 million at the time. Now the digital-asset exchange is letting people go, after bitcoin plunged 80 per cent from its peak.

But despite trading volumes shrinking to just a tenth of its record at one point, the Beijing-based company is still profitable each month, according to Livio Weng Xiaoqi, CEO of Huobi Global, the company’s main exchange business.

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

He declined to specify Huobi’s revenue, but said it is mostly generated from transaction fees.

Exchanges are among the first and most obvious victims of the prolonged bear market in cryptocurrencies, which have wiped out more than US$600 billion in the total value of some 2,000 digital tokens since January 2018, according to data from CoinMarketCap, which ranks cryptocurrencies by their market value.

Last year’s market crash has been blamed on the bursting of a bubble in initial coin offerings (ICOs), a largely unregulated crowdfunding method involving digital money, as well as the bitcoin cash “hard fork”, which led to a split in the fourth-largest cryptocurrency into two separate entities due to fundamental disagreements among its developers.

Bitcoin cash “hard fork”: everything you need to know about the latest cryptocurrency civil war

The cryptocurrency crunch has begun to bite. Leading ventures like Beijing-based Bitmain, the world’s biggest maker of specialised computers used for creating new units of digital money, and Switzerland-based software production studio ConsenSys have all announced plans for lay-offs.

While Huobi is still seeking to expand its main exchange business, which contributes over 70% of its total revenue, the company is cutting staff in loss-making units like venture funding and news aggregation, according to Weng.

Earlier this month, Huobi shut down its subsidiary in Shenzhen, which hired about 30 people to research and build new applications. The Huobi Info news app is now maintained by just a few staff, down from a couple of dozens at its peak. In total, the company still has a workforce of 1,300 employees globally, after cutting about 100 positions over the past weeks, Weng said.

China’s Bitmain Technology and Huobi plan lay-offs as cryptocurrency crunch begins to bite

Founded in 2013, Huobi was at one point the world’s biggest bitcoin exchange by trading volume, as the platform offered zero transaction fees to attract risk-loving Chinese retail investors. In September 2017, Beijing’s ban on cryptocurrency trades forced Huobi to migrate its exchange business to Singapore.

Huobi hosts a daily trading volume of US$370 million, about half of the trades on leading exchange Binance, according to CoinMarketCap.

More than 70 per cent of Huobi Global users are Chinese who live outside China or use a VPN service, judging from their user interface language settings. They are followed by Russian and English speakers, Weng said.

“Our greatest advantage over competitors is that we have licenses in all major countries – we are the only one among top global exchanges,” Weng said.

Regulators around the world are gearing up to regulate cryptocurrency exchanges, especially when they deal with real money. Aside from its main digital-asset trading platform, Huobi has obtained licenses to operate fiat-to-crypto exchanges in markets including the US, Japan, and Europe. By comparison, Binance has quit the US and Japan amid regulatory concerns, and instead expand into smaller nations like Malta and Uganda.

How China’s crackdown helped Binance become the world’s largest cryptocurrency exchange

“Despite their success overseas, I think it would be very hard for them [Huobi] to compete with US exchanges locally,” said Joyce Yang, founder of New York-based Global Coin Research, which focuses on Asia’s cryptocurrency space.

“They can have a very successful business focusing on Asia and China, and they should really just double down there,” Yang said. “But in the exchange space, everyone is trying to hedge themselves and compare themselves with each other.”

Huobi rolled out a new platform for futures trading in December to challenge the likes of OKEx and BitMEX, and claimed to have accumulated over US$20 billion in trading volume within a month.

The company released a new app earlier this month called Huobi Chat, which is a mix of cryptocurrency wallet and messenger app, and aims to attract 1 million users within the first 50 days of its launch. Red banners hanging over Huobi’s Beijing offices remind employees of that target, and describe them as an “iron army”.

At the end of the day, such efforts need “a window of opportunity, another bull run, to pay off”, Weng said.

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Bitcoin Cash Trading Down 7.4% This Week (CRYPTO:BCH)

Bitcoin Cash (CURRENCY:BCH) traded down 0.3% against the U.S. dollar during the 1 day period ending at 15:00 PM ET on January 14th. Over the …

Bitcoin Cash logoBitcoin Cash (CURRENCY:BCH) traded down 0.3% against the U.S. dollar during the 1 day period ending at 15:00 PM ET on January 14th. Over the last week, Bitcoin Cash has traded down 7.4% against the U.S. dollar. Bitcoin Cash has a total market capitalization of $2.16 billion and approximately $189.14 million worth of Bitcoin Cash was traded on exchanges in the last day. One Bitcoin Cash coin can currently be bought for about $122.94 or 0.03440372 BTC on exchanges including Bit2C, B2BX, SouthXchange and C2CX.

Here is how related cryptocurrencies have performed over the last day:

  • Bitcoin (BTC) traded down 0.4% against the dollar and now trades at $3,578.01 or 1.00000000 BTC.
  • Steem (STEEM) traded 6.2% higher against the dollar and now trades at $0.39 or 0.00010816 BTC.
  • Unobtanium (UNO) traded 3.7% lower against the dollar and now trades at $71.75 or 0.02008804 BTC.
  • Namecoin (NMC) traded 2.7% lower against the dollar and now trades at $0.70 or 0.00019489 BTC.
  • Counterparty (XCP) traded 3.5% lower against the dollar and now trades at $2.11 or 0.00058984 BTC.
  • Crown (CRW) traded 1.8% lower against the dollar and now trades at $0.11 or 0.00002997 BTC.
  • CHIPS (CHIPS) traded 0.2% lower against the dollar and now trades at $0.0430 or 0.00001203 BTC.
  • Terracoin (TRC) traded 72.4% higher against the dollar and now trades at $0.0189 or 0.00000529 BTC.
  • ATBCoin (ATB) traded 0.1% lower against the dollar and now trades at $0.0085 or 0.00000239 BTC.
  • UnbreakableCoin (UNB) traded flat against the dollar and now trades at $0.11 or 0.00001757 BTC.

About Bitcoin Cash

Bitcoin Cash is a proof-of-work (PoW) coin that uses the SHA-256 hashing algorithm. Its launch date was August 1st, 2017. Bitcoin Cash’s total supply is 17,578,825 coins. The official message board for Bitcoin Cash is bitcointalk.org. Bitcoin Cash’s official website is www.bitcoincash.org. The Reddit community for Bitcoin Cash is /r/Bitcoincash and the currency’s Github account can be viewed here. Bitcoin Cash’s official Twitter account is @bitcolncash and its Facebook page is accessible here.

Bitcoin Cash Coin Trading

Bitcoin Cash can be traded on these cryptocurrency exchanges: Fatbtc, FCoin, Trade Satoshi, OKCoin International, Coinroom, BTC Markets, EXX, Altcoin Trader, Gate.io, IDCM, ZB.COM, CryptoBridge, SouthXchange, BTCC, Bibox, RightBTC, BX Thailand, Coinsquare, CoinExchange, CoinTiger, xBTCe, Cobinhood, Koinim, Independent Reserve, DSX, Stellar Decentralized Exchange, Kucoin, CoinBene, Koineks, Bitfinex, Bleutrade, Huobi, DragonEX, Ovis, ACX, HBUS, Coinsuper, Gatecoin, Zaif, Trade By Trade, Liqui, CoinFalcon, CPDAX, Koinex, ABCC, Cryptohub, Negocie Coins, Bitsane, BiteBTC, BigONE, Poloniex, Exmo, CoinEx, QBTC, Iquant, Coinfloor, Bittylicious, Bit2C, Braziliex, Waves Decentralized Exchange, ChaoEX, Coindeal, Bithumb, CEX.IO, Allcoin, Bisq, Tidex, BitForex, Coinone, TOPBTC, Bitso, Bit-Z, Coinbase Pro, Kraken, GOPAX, Binance, Kuna, Bitstamp, Korbit, Vebitcoin, Upbit, OTCBTC, Stocks.Exchange, bitFlyer, Crex24, HitBTC, Instant Bitex, Zebpay, MBAex, COSS, Indodax, Liquid, Coinbe, Coinrail, Mercado Bitcoin, Buda, Mercatox, Exrates, Cryptomate, BTC Trade UA, Cryptopia, Coinhub, Bitbank, BitBay, Bittrex, cfinex, Coinnest, B2BX, CoinEgg, Graviex, Bitinka, BitMarket, WazirX, BtcTrade.im, YoBit, WEX, UEX, QuadrigaCX, Bitbns, Sistemkoin, C2CX, Livecoin and OKEx. Investors seeking to acquire Bitcoin Cash using US dollars directly can do so using Gemini, Changelly or GDAX.

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Two Former Executives Jailed for Faking Cryptocurrency Transaction Volumes

… wash trading on the crypto industry, saying, “the crime has damaged customers’ confidence in the virtual currency exchange and has had a negative …

On January 17, 2019, two former executives from Komid, a South Korean cryptocurrency exchange, were jailed for three and two years respectively for using fake accounts to fraudulently inflate transactions on the exchange.

The Sentencing

In a historic move, the 13th Criminal Settlement Agreement of the South District Court in Seoul has dished out the first ever jail term for the manipulation of a cryptocurrency exchange’s transaction numbers. The sentence in question was given to two executives at Komid, a Korean cryptocurrency exchange.

The two executives who have been sentenced are Hyunsuk Choi and another individual named Park. Hyunsuk Choi served as the CEO and an in-house director at Komid respectively.

Choi received a three-year sentence while Park received a two-year sentence for what the judge called “orchestrating fraudulent trading volume”.

The pair allegedly set up five accounts, fabricating 5 million transactions which amounted to around $45 million in fees. A bot was used to create large orders which inflated the exchange’s transaction volume when in fact the exchange never had that much in funds to begin with.

The Problem of Wash Trading

The act that the men engaged in is referred to as ‘wash trading’ and is the process by which transactions are faked in order to deceive investors and the public in order to make higher profits.

It has been speculated that the practice of ways trading is more common among small altcoins trying to attract more business. In the case of Komid, the money being made from the scheme is hardly a small amount.

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In recent times, a number of exchanges such as Bitforex and Binance have been accused of faking a percentage of their transaction volumes, though the exchanges have adamantly denied these allegations.

The reason behind these suspicions is that similar amounts of transactions of the same tokens seem to take place around the same time on these exchanges, leading some to believe that automated bots are carrying out these transactions to drive up figures.

A study by the Blockchain Transparency Institute even suggests that up to 80% of pairs on 95% of exchanges are faked.

The Effect of Wash Trading on the Industry

When reviewing the case, the judge who gave the sentencing commented on the effect of wash trading on the crypto industry, saying, “the crime has damaged customers’ confidence in the virtual currency exchange and has had a negative effect on the domestic virtual currency trading market.”

This statement has truth to it as cryptocurrency is just starting to gain the interest and trust of the public, and being associated with transaction manipulation is hardly a good look.

This sentencing, however, could set a precedent as well as send a strong message that wash trading will not be tolerated by law enforcement.

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Infinity Economics Price Down 10.5% Over Last Week (CRYPTO:XIN)

Investors seeking to trade Infinity Economics should first purchase Bitcoin or Ethereum using an exchange that deals in US dollars such as GDAX, …

Infinity Economics logoInfinity Economics (CURRENCY:XIN) traded down 7.6% against the US dollar during the one day period ending at 13:00 PM Eastern on January 14th. Infinity Economics has a total market capitalization of $0.00 and approximately $8.34 million worth of Infinity Economics was traded on exchanges in the last day. One Infinity Economics coin can currently be purchased for $0.0014 or 0.00000038 BTC on major exchanges including InfinityCoin Exchange, Coindeal, BitBay and Sistemkoin. In the last week, Infinity Economics has traded 10.5% lower against the US dollar.

Here is how similar cryptocurrencies have performed in the last day:

  • Bitcoin (BTC) traded 0.3% lower against the dollar and now trades at $3,579.29 or 1.00000000 BTC.
  • Bitcoin Cash (BCH) traded down 0.3% against the dollar and now trades at $123.05 or 0.03438209 BTC.
  • Steem (STEEM) traded up 9.5% against the dollar and now trades at $0.39 or 0.00010887 BTC.
  • BitcoinDark (BTCD) traded flat against the dollar and now trades at $16.23 or 0.00246929 BTC.
  • Unobtanium (UNO) traded 3.5% lower against the dollar and now trades at $71.82 or 0.02006952 BTC.
  • Emercoin (EMC) traded up 0.7% against the dollar and now trades at $0.30 or 0.00008274 BTC.
  • Peercoin (PPC) traded 0.6% higher against the dollar and now trades at $0.50 or 0.00013921 BTC.
  • Steem Dollars (SBD) traded 2.5% higher against the dollar and now trades at $0.94 or 0.00026316 BTC.
  • Namecoin (NMC) traded 1.4% lower against the dollar and now trades at $0.70 or 0.00019654 BTC.
  • PRIZM (PZM) traded up 4.6% against the dollar and now trades at $0.12 or 0.00003364 BTC.

Infinity Economics Profile

Infinity Economics is a Proof-of-Stake (PoS) coin that uses the SHA-256 hashing algorithm. Its genesis date was October 2nd, 2017. Infinity Economics’ total supply is 9,000,000,000 coins. Infinity Economics’ official website is www.infinity-economics.org. The Reddit community for Infinity Economics is /r/infinityeconomics and the currency’s Github account can be viewed here. Infinity Economics’ official Twitter account is @XIN_Foundation and its Facebook page is accessible here. Infinity Economics’ official message board is forum.infinity-economics.org.

Buying and Selling Infinity Economics

Infinity Economics can be bought or sold on these cryptocurrency exchanges: Coindeal, Coinbe, Sistemkoin, BitBay and InfinityCoin Exchange. It is usually not presently possible to purchase alternative cryptocurrencies such as Infinity Economics directly using US dollars. Investors seeking to trade Infinity Economics should first purchase Bitcoin or Ethereum using an exchange that deals in US dollars such as GDAX, Gemini or Coinbase. Investors can then use their newly-acquired Bitcoin or Ethereum to purchase Infinity Economics using one of the aforementioned exchanges.

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Bitcoin Cash SV (BCHSV) Price Up 39.5% Over Last Week

Bitcoin Cash SV (CURRENCY:BCHSV) traded 70.9% higher against the US dollar during the 1 day period ending at 11:00 AM E.T. on January 21st.

Bitcoin Cash SV (CURRENCY:BCHSV) traded 70.9% higher against the US dollar during the 1 day period ending at 11:00 AM E.T. on January 21st. During the last week, Bitcoin Cash SV has traded up 39.5% against the US dollar. Bitcoin Cash SV has a total market cap of $0.00 and $630.20 million worth of Bitcoin Cash SV was traded on exchanges in the last 24 hours. One Bitcoin Cash SV coin can currently be purchased for approximately $118.46 or 0.02991990 BTC on popular cryptocurrency exchanges including Bitbns, SouthXchange, Altcoin Trader and CoinZest.

Here is how similar cryptocurrencies have performed during the last 24 hours:

  • Mixin (XIN) traded 0.5% higher against the dollar and now trades at $99.35 or 0.02782291 BTC.
  • Fusion (FSN) traded up 1.4% against the dollar and now trades at $0.35 or 0.00009727 BTC.
  • Litecoin Cash (LCC) traded 2.9% higher against the dollar and now trades at $0.0087 or 0.00000245 BTC.
  • Bitcoin Atom (BCA) traded up 24.7% against the dollar and now trades at $0.22 or 0.00006025 BTC.
  • Sakura Bloom (SKB) traded 3.3% lower against the dollar and now trades at $0.0014 or 0.00000039 BTC.
  • Distributed Credit Chain (DCC) traded down 11.2% against the dollar and now trades at $0.0011 or 0.00000031 BTC.
  • Bean Cash (BITB) traded 5% higher against the dollar and now trades at $0.0010 or 0.00000027 BTC.
  • XinFin Network (XDCE) traded 3.7% higher against the dollar and now trades at $0.0006 or 0.00000017 BTC.
  • DAO.Casino (BET) traded down 16.1% against the dollar and now trades at $0.0107 or 0.00000300 BTC.
  • Measurable Data Token (MDT) traded 1.5% lower against the dollar and now trades at $0.0039 or 0.00000109 BTC.

About Bitcoin Cash SV

Bitcoin Cash SV is a coin. It was first traded on November 15th, 2018. Bitcoin Cash SV’s total supply is 21,000,000 coins. The official website for Bitcoin Cash SV is bitcoinsv.io. Bitcoin Cash SV’s official Twitter account is @nChainGlobal.

Buying and Selling Bitcoin Cash SV

Bitcoin Cash SV can be traded on these cryptocurrency exchanges: Bitbns, Korbit, CoinEx, DragonEX, OTCBTC, Coinsuper, Bithumb, BigONE, Huobi, Trade Satoshi, Kraken, Koinex, Gate.io, HitBTC, FCoin, Bibox, Binance, Coinbit, WazirX, CoinBene, Kucoin, BX Thailand, OKEx, Cobinhood, Coinsquare, ZB.COM, CoinZest, Bitfinex, SouthXchange, Indodax, Hotbit, YoBit, MBAex, Bittrex, Bit-Z, Altcoin Trader, Bitkub, Poloniex, IDAX, Upbit and Bitrue. It is usually not possible to purchase alternative cryptocurrencies such as Bitcoin Cash SV directly using US dollars. Investors seeking to trade Bitcoin Cash SV should first purchase Ethereum or Bitcoin using an exchange that deals in US dollars such as Changelly, GDAX or Gemini. Investors can then use their newly-acquired Ethereum or Bitcoin to purchase Bitcoin Cash SV using one of the exchanges listed above.

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