Huobi Group founder Leon Li is in talks with a group of investors as the Chinese entrepreneur seeks to sell his majority stake in the crypto exchange at a valuation of between $2 billion and $3 billion. bloomberg report good.
People close to the matter said FTX founder Sam Bankman-Fried and Tron founder Justin Sun were among the investors who have had initial talks with the Huobi boss.
Lee is reportedly seeking to sell about 60% of the firm. A potential deal could bring Huobi’s founder to over $1 billion, making it the biggest deal ever made in the crypto industry.
Huobi’s existing investors, including ZenFund and Sequoia China, were informed of Li’s intentions during a shareholder meeting in July, with one person saying a deal could be completed before the end of the month.
“He [Li] Hopefully the new shareholders will be more powerful and resourceful, and they will value the Huobi brand and invest more capital and energy to drive Huobi’s growth,” Huobi Global reported bloombergRefusing to disclose additional details.
Huobi Exchange’s native token HT also rose to $5.56 from the subsequent $4.45 bloomberg report, before dropping back to $5.31 as of press time.
According to CoinMarketCap, this still represents a massive increase of over 19% in value over the past days.
Huobi Global, FTX and Tron did not immediately respond decryptComment request.
Bear market takes toll on Huobi
Founded in 2013, Huobi was ousted from China last year amid crackdown on the crypto industry and is currently registered in Seychelles.
With a trading volume of over $1 billion in the last 24 hours, it is now one of the largest crypto exchanges in the world.
Reports of Huobi’s founder selling his stake in the firm first surfaced in early July when China-based crypto journalist Colin Wu reported on Twitter.
“With over $1 billion in profits in 2021, Huobi could be the most profitable exchange in the world after Binance in 2021, and has multiple compliant licenses. But it can be difficult to sell highs when markets are down. Maybe,” Wu wrote at the time.
Before that, woo informed of That’s because of the sharp drop in revenue after removing all Chinese users, Huobi was preparing for a workforce cut, which could amount to as much as 30% of the firm’s workforce.
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