Huobi co-founder sells controlling stake to About Capital Management

After the deal closes, the cryptocurrency exchange will launch a number of initiatives aimed at expanding its business

09.10.2022 - 06:30

289

2 min

What’s new? The co-founder of cryptocurrency exchange Huobi, Leon Li, sold his controlling stake in the company. Hong Kong-based investment firm About Capital Management (ACM) will become the new owner of 60% of the platform's securities. According to a report on the Huobi blog, Li will not participate in the operation of the exchange after the deal closes. It is reported that the change in ownership will not affect trading activity. The parties did not disclose the amount of the deal, but in August, Li said that he expected to receive up to $3 billion for the sale of his stake in the company.

Information on the Huobi blog

Details of the agreement. According to ACM's plans, Houbi will launch a number of initiatives to expand its business after the deal closes. The company's plans include creating a global strategic advisory board led by industry leaders and increasing its insurance fund.

What preceded it? In September 2021, Huobi's revenues dropped significantly due to the blocking of users from China in accordance with the requirements of the local government. As analyst Colin Wu reported, the exchange was previously the second most profitable with more than $1 billion.

Huobi was founded in 2013 in Beijing. It is currently based in Seychelles, with offices also in Hong Kong, South Korea, Japan, and the United States. The second largest shareholder of the exchange is the Chinese division of the US venture capital fund Sequoia Capital. The platform hosts 648 cryptocurrencies and 971 trading pairs. The daily trading volume is $527,3 million.

The platform's native Huobi Token (HT) is used to get discounts on fees, as well as additional rewards and bonuses. As of October 8 at 11:30 UTC, HT is trading at $4,23, having gained 0,75% in a day, according to CoinMarketCap. It has a market capitalization of $649,3 million.

About Capital Management was founded in 2008. It provides asset management services and also offers financial products, fund stocks, and other related services. The company mainly serves clients in the Asia-Pacific region.

Author: