Cryptocurrency exchange Huobi expects revenue to drop 30 percent amid China's digital asset ban. This was announced yesterday by the co-founder of the platform Du Jang. In order to minimize damage, the company will have to expand its activities in other regions of the world while reducing services to Chinese customers, he said. For this, the staff of the exchange will be increased almost fourfold. Let's talk about what is happening in more detail.
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| huobi |
Recall that China banned interaction with cryptocurrencies at the end of September. And although before that, the authorities of the country made such statements almost twenty times
For example, in mid-October, Binance announced that it would stop supporting the yuan on its OTC trading platform in 2022. In addition, the company will stop interacting with Chinese users, however, in this context, the platform employees did not give an exact date.
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| Binance Exchange Manager Changpeng Zhao |
Huobi itself is a very popular cryptocurrency platform. In the ranking of spot cryptocurrency exchanges, that is, transactions at current prices at the moment, Huobi ranks third. It only lags behind Binance and Coinbase. Here is the current platform rankings.
Rating of spot cryptocurrency exchanges
How China affects cryptocurrencies
Here is a quote from Jan in which he shares the company's vision of the current situation. Replica published by Decrypt .
Huobi is in the process of stopping service to all Chinese users until the end of 2021. From this category of clients, our profit will drop to zero.
Accordingly, the company has about a month and a half to completely stop interacting with Chinese citizens. And taking into account the severity of the actions of the authorities on the territory of the country, it can be assumed that this instruction will actually be executed.
Huobi co-founder Du Jang
And while the platform remains the leader in Asia, Jan expects to expand to other regions of the world. This strategy will become a new focus for the company's development in the near future. As a reminder, earlier this year, the Chinese government launched a radical crackdown against the country's crypto industry. Regional authorities ordered miners to completely scale back their activity, and the State Council of China has included the mining of crypt in the list of "unwanted" areas of activity.
Not only miners were under attack: financial companies, banks and exchanges are now unable to service everything related to Bitcoin or altcoins. Huobi had to close trading in futures and other crypto derivatives for the Chinese. In addition, registration of new users in the country was completely suspended.
The dynamics of the hashrate of the Bitcoin network this year
Negative news from China had a huge impact on the hash rate of the Bitcoin network and the price of the cryptocurrency: both of these indicators collapsed almost half a year ago. However, many investors considered the crisis to be a profitable investment opportunity, and by today BTC has reached a new historical maximum value, and the hash rate has practically returned to its value before the bans were introduced.
We have updated the latest data: the current Bitcoin record at the time of writing is $ 68,524. At the same time, the last maximum for the crypt was the level of 67 thousand dollars.
Bitcoin price hourly chart
All this happened against the backdrop of another boom in the field of unique tokens: NFT trading broke records in popularity several times. As a result, OpenSea, one of the main platforms for exchanging NFT collections, has now reported an increase in the total volume of transactions carried out to $ 10 billion.
Top 5 NFT Trading Platforms
This is an impressive record, as in August alone, NFT sales and purchases reached "only" $ 1 billion. Not only large crypto investors, but even Hollywood stars have joined the hype. Recall that recently the world famous director Quentin Tarantino announced the launch of his own collection of unique tokens. Read more about what is happening in a separate article .
We believe that what is happening in the cryptocurrency niche now looks very positive. Bitcoin is updating its price highs, and popular trends within the industry like the same NFT tokens are still very strong. So it looks like the end of 2021 can really be very interesting and profitable for cryptocurrency investors.
Look for even more interesting things in our crypto-chat of millionaires . There we will talk about other topics that affect the development of the industry of decentralized assets and finance.
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