According to reports, Justin Sun, the cryptocurrency entrepreneur who founded the Tron blockchain DAO ecosystem and currently serves as an official advisor to the Huobi crypto exchange, has been focusing on serving Chinese customers, despite the Chinese government’s crypto ban remaining in place for the past two years.
On March 31st, Bloomberg tweeted that Justin Sun, a prominent figure in the cryptocurrency industry, has proposed a controversial strategy at Huobi Global to recapture lost market share. The tweet highlighted that Sun had suggested an approach to regain the market share that Huobi Global has lost.
Inside crypto mogul Justin Sun's controversial strategy for regaining lost market share at Huobi Global https://t.co/UTh56PFWJK
— Bloomberg (@business) March 31, 2023
Huobi’s Singapore shift
In 2021, Huobi moved a substantial section of its operations to Singapore in response to China’s prohibition on the cryptocurrency market. Due to this move, Huobi severed its relations with its Chinese clients.
Justin Sun is said to have indicated a significant interest in regaining control of Huobi’s cryptocurrency trading activities in China, according to sources who are acquainted with the situation and have shared this information. In addition, it has come to light that he has given around two hundred million dollars worth of his riches to the corporation.
According to Sun, the most important thing for the firm to do to get acceptability on a global scale is first to develop a global footprint and then recruit Chinese clients. He went on to say that the business is now suffering huge losses of about $10 million per month and that to reduce these losses, the firm would have to reduce the scope of its activities.
It was alleged that the adviser had recruited Chinese consumers during the previous two months; however, the persons acquainted with the subject refused to divulge their identities.
Huobi bans Chinese users
It is important to note that Huobi has declared its exit from the Chinese market and has barred Chinese users from enrolling on their site or accessing it using Chinese IP addresses. In addition, they highlighted that their new consumer base would come from regions other than China, namely the rest of the world.
Since the country’s prohibition, Chinese officials have not imposed fines on the country’s people who continue to participate in cryptocurrency activities. This is an important fact to note. Nonetheless, users can access other cryptocurrency trading sites by concealing their nationality while utilising virtual private networks (VPNs).