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
301
2 min
0
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.
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.
Useful material?
Technologies
It is available to crypto wallet users worldwide as an additional feature
May 15, 2024
Market
The ex-official known for his initiatives to explore the potential of blockchain in the financial system has joined the board of directors of a fintech company
May 14, 2024
Business
Earlier, Brad Garlinghouse claimed apparent harassment of the company by the US authorities
May 14, 2024
Crypto regulations
According to Brad Garlinghouse, the magnitude of the impact of such harassment on the crypto ecosystem is beyond prediction
May 13, 2024
Crypto regulations
The condition is part of the exchange’s agreement with authorities to plead guilty to regulatory violations
May 13, 2024
Market
The USDT issuer responded by saying that the report lacked sufficient data to support such claims
May 10, 2024