Local Korean news outlets say that Huobi Korea will work independently and stop doing business with its parent company. According to the report, Huobi Korea will begin negotiations about the holding of the stock. Leon Lin, the owner of Huobi Global, controlled more than 50% of the current Huobi Korea business shares. Chief Jo Guk-Bong and Korea Land Trust are two of the company’s other significant owners.
Huobi Korea to Improve Company Reputation Domestically by Rebranding its Name
The connection between Huobi Korea, a Korean cryptocurrency exchange, and Huobi Global, the parent company, is almost done. The company’s reputation in its home country is being worked on by changing its name to Huobi and buying more stock. Coin market exchange Huobi Korea reportedly started making plans on the 9th to buy shares held by Huobi Global and change its name. The corporation intends to formalize the new mission after asking internal and external workers for feedback through a public offering.
Furthermore, the equity connection with Huobi Global will be clarified. LiLin, Huobi Global’s founder, controlled a majority of the company’s shares as of the end of 2017. Cho Kuk-bong, the chairman of Huobi Korea, has bought most of the company’s shares from Lilin’s founder. Most people think that Chairman Cho runs a large virtual asset (virtual currency) mining farm.
To many in the business world, the name change and stock acquisition represented “a clean break” from Huobi Global. Comparable to Binance and FTX, Huobi Worldwide is a global marketplace for digital assets. Created in 2013 by a reformed engineer named Li Lin, it has grown to become China’s primary marketplace for digital trading assets.
Huobi Global Needs for Proof of Reserve (POR) to Avoid Bankruptcy
Huobi Global has been having trouble lately because Proof of Reserve (POR) is becoming more critical. That’s why Huobi Korea severed ties with Huobi Global as well. Because FTX went bankrupt, there was a need for Proof of Reserves (POR) between virtual asset exchanges to stop people from taking out cash.
In line with this, Huobi Global revealed in December 2017 that the company has around $3 billion in reserves. It was a big problem because 43.3% of the reserve was made up of Huobi Token (HT), which the company made. This is because most of Huobi Global’s emergency payouts to customers are made in coins. It has produced the majority of currencies, increasing the company’s risk of going bankrupt.