Huobi Founder Eyeing $1B Exit
Huobi founder Leon Li is allegedly in talks with investors to sell around 60% of the exchange.
According to a report that was published on Friday by Bloomberg, the founder of Huobi Global, one of the largest cryptocurrency exchanges in the world, has reportedly held discussions with multiple investors, including the founder of rival cryptocurrency exchange FTX and TRON, regarding the potential sale of a majority stake in the company. According to Bloomberg, which cited sources with knowledge of the situation, Li was reportedly seeking a valuation of between $2 billion to $3 billion for his company, which would indicate that he could personally pocket approximately $1 billion from the sale. If the transaction is successful, it will be one of the most significant acquisitions in the history of the cryptocurrency sector.
Huobi, with its headquarters in the Seychelles, was the most important cryptocurrency exchange in China before that country’s prohibition on cryptocurrencies one year ago. The exchange has maintained its position as one of the largest in the sector, achieving an average daily trading volume of over $1.1 billion despite incurring a considerable hit to its revenues as a direct result of the embargo. That’s roughly half of the daily trading volume at Coinbase, a cryptocurrency exchange based in the United States that’s presently valued at approximately $19 billion.
According to Bloomberg, a representative for Huobi has reportedly acknowledged that Li negotiated with multiple institutional investors about the sale of the company. They said, “He hopes that the new shareholders will be more powerful and resourceful and that they will value the Huobi brand and invest more capital and energy to drive the growth of Huobi.” “He hopes that the new shareholders will value the Huobi brand and invest more capital and energy to drive the growth of Huobi.” Despite reports to the contrary, TRON founder Justin Sun has denied ever engaging with Li concerning the sale.
The price of Huobi’s token, HT, increased by approximately 25% in response to the news, going from $4.48 to $5.46 before giving up some of its gains. HT is currently trading at around $5.30, according to data provided by CoinGecko. This represents a decrease of approximately 86.7% from its all-time high price of $39.66, which occurred in May 2021.