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HTX records profitable quarter amidst challenges, CEO optimistic about future growth

EditorRachael Rajan
Published 27/10/2023, 18:56

In a series of events that tested the resilience of the cryptocurrency exchange HTX, formerly known as Huobi, the company reported its most profitable quarter under CEO Justin Sun. This achievement comes despite considerable hurdles which included an employee revolt and a significant hacking incident.

HTX ended the quarter with a surplus of $104 million, pulling in $202 million in revenue against expenses totaling $104 million. This resulted in a profit of $98 million, marking it as the best quarter ever for the exchange, even amid a prevailing bear market in the industry.

The company faced an employee revolt earlier this year, triggered by Sun's initial plan to dissolve the firm, a move that would have led to mass unemployment. This resulted in over half of the 2,500-strong workforce being laid off, reducing the staff count to around 900.

On top of this, HTX was hit by a hacking incident. However, the crisis was resolved when the hacker returned all misappropriated funds. In an unusual move, HTX granted a 5% white hat bounty to the hacker.

To regain trust and stimulate growth after these tumultuous events, HTX implemented a token burning strategy. The company now reserves 20% of its earnings for this purpose. As part of its promotional efforts to attract more users and increase transaction volume, HTX has also offered special promotions including up to $7,000 on deposits and $100 free offers.

Looking ahead to Q4, CEO Justin Sun is maintaining a conservative financial approach. However, he expressed optimism that revenues will exceed his cautious estimates. Sun's approach and the company's recent financial performance underscore HTX's focus on future growth over immediate profits.

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