The Huobi token dropped as rumors of layoffs and bankruptcy spread over crypto media and Twitter.
HT’s price dropped by 30% in a month
The price of Huobi’s HT token has dropped by 9 percent during the past week, according to data from the cryptocurrency ranking website CoinMarketCap. Value per token is down roughly 30.4% in the past 30 days.
CoinGecko, a website that keeps track of the prices of cryptocurrencies, recently tweeted that the recent drop in HT was caused by the news that Huobi, a company based in Seychelles, had cut off internal staff communication lines and was paying employees in stablecoins.
Salaries in stablecoins for employees
Chinese blogger Colin Wu also backed Huobi’s demand that workers accept stablecoins as payment. He claimed that Huobi’s human resources division had contacted the staff and requested that they switch their salaries from cash to Tether or USD Coin (USDC) (USDT). Those who disobeyed the new directives were subject to dismissal.
Users on Twitter also claimed that the crypto exchange had cut off internal communications for fear that an uprising among workers might prompt Huobi developers to install backdoor Trojans.
A Reaction from Huobi to the FUD
Tron’s creator and current Huobi advisor, Justin Sun, has previously rejected accusations of internal turmoil and bonus cuts. He tweeted on January 6 that his audience should keep working despite the fear, uncertainty, and doubt (FUD).
The official spokesperson for Huobi has already told Reuters about layoffs, citing bad market conditions:
Huobi’s post-FTX reserves’ quality is another issue that has raised questions. Huobi utilizes its token to denominate the majority of its reserves, according to a recent report from CryptoQuant, which many analysts view as a warning sign.