Crypto exchange Huobi Global has recorded a profit of $30 million in the first quarter of 2023. Justin Sun, Tron founder and Huobi Global advisor, expects profits to rise fourfold in Q2, following measures implemented to reduce costs and boost efficiency.
Sun announced that the exchange generated $150 million in revenue and incurred $120 million in expenditures during Q1. Despite several issues, the platform remained profitable following the collapse of the crypto exchange FTX.
Sun further expects Huobi’s revenue to be $187 million and its expenses to be $76 million in the second quarter, with the quarterly profit predicted to increase almost fourfold to $111 million in Q2.
He claims that Huobi implemented measures to reduce costs and improve efficiency during the first quarter while the trading platform business was in a state of consolidation.
Business and legal developments at Huobi
Huobi’s push for transparency coincides with its pursuit of a license for its cryptocurrency exchange in Hong Kong. Reports had previously suggested that Tron founder Justin Sun was considering selling some of his stakes in Huobi, but Sun has since denied these claims.
However, trading volume on Huobi has continued to decline despite the purchase of the exchange by Justin Sun. In the last 24 hours, the exchange has fallen out of the top ten in terms of trading volume.
The U.S. securities and exchange commission (SEC) filed a lawsuit against Sun on March 22 for allegedly violating securities rules, anti-fraud, and market manipulation regulations.
Sun has since denied the accusations, calling the lawsuit meritless and criticizing the SEC for not providing clear regulatory rules and transparent guidelines.
In March, Huobi announced a strategic partnership with Gala Games for web3 and layer 1 development, demonstrating its commitment to the web3 ecosystem.
The Huobi Token (HT) currently trades at $3.60, with the price remaining flat despite a broader market recovery.