Huobi, one of the largest exchanges in the world has backtracked once again just eight months after launching its subsidiary in Australia with great expectations, subsuming its child headquarter.
We Are Still the Same
Huobi expanded its horizons just like many other cryptocurrency affiliated companies in the early part of last year, following a very successful 2017. However, the bear of 2018, coupled with the slow start of this year has caused many companies to cut their losses and review earlier lofty expectations.
Huobi, the fifth largest exchange in the world by adjusted volume launched a new headquarter in Australia last year February, citing the country as a ‘natural fit’ for cryptocurrency development and seeing the move as the right step in taking Huobi into new horizons.
Barely eight months after its launch Huobi has released a new statement alerting customers that the nascent subsidiary would be subsumed under Huobi Global which is currently headquartered in Singapore, following restrictions and the need to optimize performance. The company cited the ongoing crypto market slump as a major reason for the subsumption of its Australian subsidiary, coupled with the ‘fresh redundancies’ in the market system. The company announced via a tweet on its official Twitter account:
“Please be informed that due to poor market conditions and associated recent staff redundancies here at Huobi Australia, all operations, including the management of our platform, social media channels, and customer support will be managed by our team at Huobi Global headquarters starting 26th February 2019.”
Huobi follows other companies which have been forced to lay off workers and cut off new lofty developments to mitigate the effect of the market slump. Other major crypto companies which had to lay off their staffs included chiefly ConsenSys, Bitmain, and Steemit. However, the one which might bear much resemblance to Huobi ‘knee-jerk backtrack’ might be Nvidia, which produced more graphics cards than was necessary following the rush for bitcoin miners towards the plentiful period of 2017.
Step it Down
Huobi has taken pains to lay down the new development as a routine subsumption and a re-evaluation just as other companies such as ConsenSys and Bitmain had played down the words they employed while laying off staffs, using words such as ‘Optimizing performance’ and ‘removing underachieving quotas.’ By underachieving, Huobi meant reducing plainly its less valuable employees.
If anything, the latest ‘subsumption’ announcement is a perfectly executed decision at saving the situation while keeping us optimistic.