Huobi Korea will sever ties with Huobi Global by repurchasing shares.

On January 9, rumors surfaced that the cryptocurrency exchange Huobi Korea might be severing ties with Huobi Global, its parent business.

Huobi Korea will alter its name to separate itself from the Huobi Global, according to a statement provided to News1, because they have been having a lot of issues because of Korean rules.

A cryptocurrency exchange called Huobi Global was established in 2013 by Du Jun and Leon Li, who is now the CEO of the business. One of the biggest exchanges in the globe at the time, Huobi went head-to-head with Binance and Coinbase. In terms of the major exchanges, it is now ranked 16th, as per CoinMarketCap.

Huobi Korea will acquire all of Huobi Global's shares.

According to News1, Cho Kook-bong, the current head of Huobi Korea, is completing all the necessary steps to purchase all of the remaining stock, of which Leon Li is the largest owner (about 72% of the total).

Huobi Korea will change its name to “draw a line with Huobi Global” after all the stocks have been bought.

Despite the fact that Huobi leadership chose not to address the subject, it is noteworthy that the value of the firm's native HT token has decreased by around 25% over the previous 30 days as a result of bankruptcy speculations and the news of significant layoffs.

Regulations were one of the main factors in Huobi Korea's decision to separate from Huobi Global, since in 2021 the exchange was forced to halt all trading for five months in order to abide with rules after Huobi Global's corporate headquarters moved.

According to a regular employee of the exchange, Huobi Korea wishes to dispel the notion that it is a risky “Chinese exchange” by demonstrating that it can be a reliable “local exchange.”

Because of the stigma associated with a “Chinese exchange,” Huobi Korea has benefited from foreign exchanges. It might be taken as an attempt to demonstrate how secure the “domestic exchange” is.

Huobi Global is attempting to earn back its users' trust.

As Justin Sun, the creator of the Tron blockchain and a fellow member of Huobi Global's advisory committee, recently stated, consumers should disregard all the FUD regarding the company's bankruptcy that resulted in multi-million dollar exits at the end of December 2022.

Using Sun's likeness, Huobi Global started a bounty program on January 8 to address the communication issues that led many shareholders to quit the business.

Customers of Huobi Global will be able to communicate with Huobi's technical assistance any queries they may have regarding the assets, functions, and operations of the exchange whenever they choose, according to Sun.

“The team will regularly evaluate criticisms and suggestions on various aspects, such as experience, and those who adopt the implementation will be rewarded with great gifts and reward packages.”

Despite the layoffs, Huobi Global is attempting to earn back its consumers' confidence, which is currently the most crucial factor for any exchange, particularly in light of FTX's

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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