On Monday, Justin Sun, the founder of Tron and advisor to Huobi Global, announced that the crypto exchange had seen a profit of $30 million in the first quarter. The news coincides with Sun’s plans to obtain a virtual asset service provider license for Huobi in Hong Kong.
Huobi Global records $150 million in revenue in Q1
In a recent tweet, Tron founder Justin Sun shared that Huobi Global generated $150 million in revenue in the first quarter of 2023, with an expenditure of $120 million and a profit of $30 million. Despite facing several challenges following the collapse of the FTX exchange, Huobi’s efficiency measures and consolidation efforts paid off.
Sun predicts that Huobi’s revenue will increase to $187 million in Q2, with an expenditure of $76 million, leading to a significant profit of $111 million. The transparency move also coincides with Huobi’s efforts to obtain a license in Hong Kong.
While rumors suggest that Sun is in discussions to sell some stakes in the exchange, he denies any such plans. Meanwhile, Binance reportedly declined an offer to buy out Sun’s ownership stake in Huobi.
Despite Sun’s purchase of the exchange, Huobi’s trading volume has been declining, and it is currently not in the top ten in terms of the trading volume. However, Huobi recently announced a strategic partnership with Gala Games for Web3 and Layer-1 development, demonstrating its commitment to the Web3 ecosystem.
On the regulatory front, Sun is facing a lawsuit from the US Securities and Exchange Commission (SEC) for allegedly violating securities rules, anti-fraud, and market manipulation regulations. Sun argues that the lawsuit “lacks merit” and criticizes the SEC for not providing clear regulatory rules and transparent guidelines.
Huobi Token (HT) is currently trading at $3.59, with little movement despite the broader market’s recovery. The token’s price remains relatively stable despite the exchange’s revenue growth and strategic partnerships.
