Throughout 2018, cryptocurrency exchanges posted record profits, raking in hundreds of millions of dollars in trading fees even as the bitcoin price plunged as much as 80 percent from its all-time high. However, as the crypto bear market extends into 2019, cracks are beginning to form in the hull of this once-impervious industry as well.
Speaking in an interview with the South China Morning Post, Weng Xiaoqi, the chief executive of Huobi Global, said that the bitcoin exchange giant might “struggle to survive” if the cryptocurrency market continues on its bearish trajectory.
“We do not know how long the bear market will last, so it is still possible that we will struggle to survive,” Weng said in the interview at his Beijing office. “We have to plan in advance and spend money carefully.”
That’s a remarkable statement coming from Huobi, which is one of the oldest and largest cryptocurrency exchanges. Since its founding in 2013, Huobi has at various times ranked as the world’s highest-volume bitcoin exchanges.