The value of Huobi’s token has risen by about 18 percent after news of new investments on the crypto exchange
Capital injection and acquisition
Huobi founder Leon Li Lin recently sold his stake in the company to About Capital. About Capital is a Hong Kong based asset management company. This acquisition was accompanied by the promise of more investment.
According to a blog post on the company’s website, the move will provide Huobi with a capital injection into its margin and risk provisioning fund. In addition, it received strategic advice from the board worldwide.
Through the acquisition, the company will also undergo a series of new international brand promotion and business expansion initiatives.
While the acquisition means Leon Li Lin will lose control of the company, it will not affect Huobi’s core businesses and business management teams.
Despite not being available to users in the US or China, Huobi is still one of the most popular cryptocurrency exchanges in the world. According to CoinGecko, Huobi is currently the eighth largest crypto exchange, with more than $465 million in volume.
Huobi prepares for the next chapter
About Capital was far from the only party that wanted to take over Lin’s company. Recent reports suggest that FTX founder Sam Bankman-Fried and Tron founder Justin Sun were among the interested potential buyers. The valuation for Li’s stock is said to be worth between $2 billion and $3 billion. However, things have not been smooth sailing for the exchange in recent months.
HUSD, a stablecoin offered by the company that is supposed to stay level with the US dollar, fell nearly 15% at one point from its target $1 price. The company claimed the problem was caused by a short-term liquidity problem, due to a time difference in banking hours.
In addition, Huobi has reduced the selection of tokens it offers. This is part of its plans to better align with global regulatory frameworks. These include Dash (DSH), Decred (DCR), Firo (FIRO), Monero (XMR), Verge (XVG), Zcash (ZEC) and Horizen (ZEN).