Home General Investments Huobi Global Sees Itself as an “Unaffected” Safe Haven by Crypto Winter, Turmoil

Huobi Global Sees Itself as an “Unaffected” Safe Haven by Crypto Winter, Turmoil


Benzingaa media and data provider that bridges retail and institutional investors, reissues its annual report Global FinTech Awards event in New York on December 8, 2022.

Prior to this recognition of disruptive innovators in finance and technology, Benzinga will periodically post about brands that it believes have a measurable impact.

Today’s conversation is with Lily Zhangthe chief financial officer of the cryptocurrency exchange Global Huobi.

The following text has been edited for clarity and brevity.

Q: Hi Lily, nice to meet you! Huobi is a global leader cryptocurrency swap. Can you tell me what it takes to be a world leader?

Zhang: Essentially, this means being able to offer a quality trading platform with three main characteristics: a wide range of trading products and services, scale and liquidity (especially for institutional investors), as well as security. actives.

Are there many platforms that offer these three features globally?

There are very few platforms capable of delivering the above three elements on a global scale. Ultimately, many users want to be able to trade everything on one platform. This is our core value proposition.

On our platform, users can trade everything from Bitcoin BTC/USD complex derivatives, asset management products, etc. This contrasts with many smaller exchanges, which can only offer a handful of cryptocurrencies.

Can you tell us a bit more about the core business?

Huobi’s core business is to manage a global market cryptocurrency Exchange, including spot trading, derivatives trading and asset management (staking products in the form of Huobi Earn).

Spot trading means offering trading services for cryptocurrencies such as Bitcoin and Ethereum ETH/USD. Derivatives include coin futures and margin swaps, USDT futures and margin swaps, and options. At the same time, Huobi is also expanding its business and investment ecosystem. Recently we acquired Bitex, a cryptocurrency exchange with operations in Latin America.

With an exchange like yours, scale and liquidity allow institutions to quickly access these markets, right? What else is important?

Yes. If you don’t have scale and liquidity, customers may have to sell at deep discounts to market prices. Ensuring the safety and security of assets is also a unique proposition of Huobi Global, especially during the current market turmoil, where many exchanges and smaller lending platforms are freezing user withdrawals.

We have 20,000 BTC in our safety reserve for volatile situations, allowing us to meet trade obligations and keep user withdrawals open. Huobi Global has never had a security or hacking incident in the nine years of operation, and this is a unique record in the industry.

What other brands exist in the space and how, if any, are they addressing emerging issues in crypto? How does Houbi solve problems better?

Global exchanges include Huobi Global, Binance, and FTX. We operate across borders, in different languages, and are able to offer a large number of products across spot trading, derivatives trading, NFTs, fixed income products and more.

Huobi’s strength lies in the range of products we offer, as well as the large trading volumes and liquidity, which attract institutional investors.

In today’s bear market, many small local exchanges find themselves in precarious situations simply due to their small size and limited reserves. Many have to freeze user withdrawals.

Huobi Global is one of the leading cryptocurrency exchanges by size of trading volumes, and this deep liquidity and large scale allows us to operate normally during market downturns.

What are some of the challenges in building the business at this stage of its life cycle?

It’s a challenge trying to manage a global business across many regions, countries and languages.

At some point, there is a need to gradually build local teams in some countries and delegate decision-making responsibilities and autonomy, but it is difficult to determine exactly when this should happen, especially since the use of crypto- currency is exploding around the world.

Other factors also come into play, such as different degrees of regulation in different countries and language barriers.

Currently, decision-making and strategic planning is centralized by the company’s senior management, with small local teams in different countries to execute the plans. This ensures that we are able to act quickly, albeit with some degree of input from local teams and a centralized translation center that we operate.

The market volatility has questioned the stability of their gateways to these emerging markets like crypto a lot. The perception, in many cases where the platforms failed, was that there was no counterparty risk and that client funds would be safe. In what unique way does Huobi mitigate risk for its customers?

Huobi Global has not had a single major security incident in the past nine years that resulted in the loss of user assets, and the exchange has continued to ensure the safety of user assets and transactions.

Huobi Global has adopted various methods such as hot and cold wallet separation, multi-signature, professional distributed architecture, and anti-DDoS attack system to protect user assets. Note that funds used to support our operations are fully segregated and isolated from user funds.

Huobi Global also holds a security reserve of 20,000 BTC to help guard against any market downturns and ensure that we are able to meet user obligations.

Tell me about where Huobi will be in the next 6-12 months. What are some of the most exciting things the team is working on?

We are optimistic and optimistic about Web3, metaverse and other related activities.

We believe that Web3 represents the evolution and the next generation of the Internet towards a smarter, decentralized, autonomous and open network.

Centralized exchanges such as Huobi can support user migration to Web3, serving as a single source of trust and security. In short, we will act as a gateway to Web3, as exchanges are one-stop marketplaces for all things blockchain and crypto.

We mainly invest in Web3 through Web3 infrastructure and list Web3 related projects. So far, Huobi has invested in OptimizmPBC, zkSync and other high-quality Layer 2 programs to further develop the infrastructure for a Web3 future.

With Huobi’s deep expertise in blockchain technologies and extensive industry experience, we can also help Web2 companies migrate to Web3 at the investment or incubation level.

Can you comment on recent rumors regarding Huobi layoffs, among others? How can Huobi survive this crypto winter?

Huobi has not been affected by any of the crises in recent months. She is client-centric and strongly committed to protecting the rights and interests of her clients. We always keep our promise to pay 100% of our obligations to our customers.

This has not changed despite market conditions. Through this bear market, we maintained strong cash flow and invested over $300 million in expansion efforts. Our team is also in talks to invest in deals worth over $6 billion.

Regarding layoffs, we have no quota. Our business continues to operate as normal, and going forward, we will continue to increase our investments in growing markets around the world, recruit the right talent, and innovate more.


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