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HomeAltcoinsCrypto exchange Huobi Global plans global expansion after About capital acquistion

Crypto exchange Huobi Global plans global expansion after About capital acquistion

On October 8, Huobi Global, a cryptocurrency exchange, announced the transfer of the company’s Founder Leon Li’s stake to About Capital, a Hong Kong-based asset management company. As per the announcement, Huobi Global is planning to grow its global presence.

The company stated that Huobi would seek to “embrace a series of new international brand promotion and business expansion initiatives” under its new management.

huboi global

These initiatives would include the creation of a global strategic advisory board led by leading business leaders, the injection of adequate capital into margins and the establishment of a risk provision fund.

Ted Chen, CEO of About Capital said, “Huobi Global provides millions of customers worldwide with the best services for investing in virtual assets. We believe the virtual asset sector is still in its early stages and has a huge amount of potential for long-term growth. We are confident that the comprehensive strategy to rebuild Huobi Global as the leading worldwide virtual asset exchange would reinforce both the recognition and trust of Huobi’s international users.”

After the announcement of agreement news, Huobi’s native token, HT gained value and is currently trading at $5. After months of speculation regarding Li’s desire to sell his stake, the deal has finally been resolved.

Although the details of the agreement were not uncovered. Reports from August suggest that the acquisition may have cost up to $3 billion.

Sam Bankman-Fried, the founder of FTX, and Justin Sun, the creator of Tron, were two people who were interested in Li’s investment.

When Huobi was first established in China in 2013, it was a leading cryptocurrency exchange. However, once Beijing announced that all cryptocurrency transactions were unlawful, the company left the Chinese market in 2021.

As per Li, the blanket ban forced Huobi to grow into new areas, which resulted in important changes to the business’s infrastructure and shareholding pattern.

Li further said, “After Huobi left the Chinese mainland market in 2021, we have escalated our globalisation efforts in a difficult market environment, which has given Huobi more reason to try a new shareholding structure with a worldwide outlook and global resources. We believe the About Capital vehicle’s successful acquisition would aid Huobi’s worldwide expansion in both aspects.”

Huobi had also opened a U.S. exchange in 2018. However, due to management problems and regulatory concerns, it was ultimately closed. The company now intends to start an asset management company in the territory.

Huobi recently shut down its exchange in Thailand as the government suspend its licence for allegedly breaking local laws.

As per CoinGecko, Huobi is one of the top 10 biggest and most reliable centralised exchanges on the globe, with a daily average trading volume of about $500 million.

Due to regulatory concerns and the bear market, Huboi plans to expand to other markets might get hindered. However, its entry into the established market would increase the competition with other exchanges such as Coinbase and Binance.

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