On Monday, the Huobi crypto exchange announced that it had shut down operations in the US. This is after HBUS, its partner in the US failed to meet its expectations. The changes take effect from December 15 and customers have been given until January 31 to withdraw their funds from HBUS. In a FAQ section dedicated to the shutdown, HBUS advises its customers to export their transaction data before it shuts down its operation.
It Plans to Come Back
Huobi added that this was temporary as it works to revamp its operations. It added that it would be back without revealing any further details. In November, Huobi shut down all the accounts of US citizens and encouraged them to sign up to HBUS. The exchange requested its US users to move their funds to HBUS. However, it would appear that those efforts were not enough to keep HBUS afloat.
Other Attempts to Breathe Life into HBUS
In January this year, Huobi Group authorized HBUS to use the Huobi name. This was part of an effort to increase the popularity of the exchange but does not seem to have worked. At the time, Huobi had banked on brand recognition to help propel the exchange forward. As part of the rebranding effort, HBUS moved its operations to huobi.com.
In March this year, HBUS attempted to salvage the situation by wooing institutional investors. To do this, the exchange formed a team, which was headed by Katelyn Mew, to oversee the on-boarding of institutional investors. At the time, Mew said that the decision was taken due to growing demand from institutional investors.
HBUS launched in the US in 2018. At the time, the leadership at HBUS considered this a good move since the US is one of the largest participants in the crypto market. It launched with nine major cryptocurrencies, including Tether. During its launch, only US citizens from 41 states were allowed to access the platform. Since then, it has struggled to make any meaningful gains in the US market, which is dominated by major exchanges such as Binance and Coinbase. Additionally, various internal issues ultimately led to its demise.
This shutdown follows the departure of various top-level members of the management team including Oren Blonstein, who became the exchange’s CEO in September. Before him, Frank Fu, who is the current managing director of Fenbushi Capital, was in charge.
Huobi is Doing Quite Well
While Huobi Group has faced headwinds in the US, it is doing quite well globally. In November, Huobi Japan managed to raise $4.6 million, which it plans to use in the development of products related to security tokens.
Today, Huobi Group is one of the largest blockchain companies in the world. The Huobi exchange is amongst the top five exchanges in the world. Since being established in 2013, it has had a cumulative turnover of over $1 trillion. Its services are renowned for being secure and convenient and they allow users from over 130 nations globally to participate in the crypto market.
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