Leon Li, CEO of Huobi, Wants To Get Rid Of Stake in Company For $1B

Leon Li, CEO of Huobi, Wants To Get Rid Of Stake in Company For $1B

Li intends to sell sixty percent of his investment in Huobi for one billion dollars. Following the publication of the Bloomberg report, the price of HT shares increased by over 25 percent, reaching $5.43. The potential buyers reportedly include Justin Sun and Sam Bankman-Fried of FTX.

Leon Li, the founder of the leading cryptocurrency exchange Huobi Global Group, is in discussions with investors to sell the majority of his interest in the company for close to one billion dollars. According to a report from Bloomberg, Li is reportedly engaging in negotiations with several different investors to sell approximately sixty percent of the company he established almost ten years ago.

According to reports, prominent figures in the cryptocurrency business are on the list of potential purchasers. These figures include Justin Sun, the founder of Tron, and Sam Bankman-Fried, the CEO of the FTX exchange. People aware of the situation have stated that SBF and Sun had already begun conversations with Huobi over the potential acquisition. On the other hand, Justin Sun had denied having any participation.

In addition to Sun and SBF, the story names Sequoia China as “existing backers.” Sequoia China was informed of Li’s decision during the shareholder’s meeting that took place in July.

If the transaction is successful, it will be the first time one of the larger cryptocurrency companies has sold a majority ownership in their company. According to the report, the transaction regarding the acquisition might be finalized before the end of this month. According to recent reports, Li is aiming for an overall valuation of between $2 billion and $3 billion, which indicates that the sale of the stake might bring in more than $1 billion.

As a direct result of the Bloomberg news, the value of HT, which is the native token of the Huobi exchange, increased to $5.43 by roughly 25 percent.

 

What is Huobi?

Huobi is a cryptocurrency exchange that was established in 2013 and is currently ranked among the largest in the world. According to data provided by Coingecko, Huobi has a daily trade volume of more than one billion dollars.

The rumors that the creator of Huobi was looking to sell his stake were first brought to light at the beginning of July when a crypto-journalist named Colin Wu sent out a tweet.

“Huobi might become the most profitable exchange in the world in 2021, surpassing Binance’s profits by more than one billion dollars, and it already possesses a number of compliance licenses. However, when the market is falling, it could be tough to sell something of higher worth,” states Wu’s tweet.

At the end of June, there have also been reports that the exchange will be firing at least thirty percent of its workforce. The bear market has wiped out big names in the cryptocurrency sector. A little while ago, almost twenty percent of OpenSea’s workforce was let go. OpenSea is the largest NFT Marketplace. Some prominent cryptocurrency companies, like Celsius and Voyager, have lately declared bankruptcy as a result of the volatility of the market.

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