Huobi Token: Meet The Cryptocurrency By The Chinese Tech Giant
Huobi is a Singapore-based crypto exchange that was launched in 2013 by the former Oracle engineer Leon Li. It was originally based in China but later expanded to Singapore, South Korea, and Japan after then 2017 trade ban which was imposed in China. Huobi now has more than 280 cryptocurrency markets with more than $350 billion worth of crypto tokens traded each day making it the third-largest exchange in the world.
In June 2018, Huobi Group announced the Huobi Chain which distributed the exchange ledger. The exchange also supports OTC and derivatives and futures trading with more than $550 million processed trades a day. The huobi token is a proprietary cryptocurrency created in 2018 as a reward for the exchange of users with low fees. The token was distributed to paid Huobi VIP members responding to the crypto ban and the decreased trading activity. The exchange coin is tradeable with any other cryptocurrency on the exchange and comes with voting rights. The group also launched the Huobi Prime platform which is a premium service that lets the users invest early in selected coins.
The initial distribution of the coin took place from January to February last year and currently there are more than 300,000,000 of the total HT supply distributed on one come on the first come first serve basis to the Huobi VIP subscribers. There are a few other levels of Huobi VIP with the bottom tier paying 120 HT per month and a ten percent trading discount. Huobi’s discount is perpetual but you do need to pay it monthly for the benefit. Huobi modeled many of the features and benefits after the binance coin token. Aside from the trading discount, Huobi plans to buyback HT just like Binance does with BNB.
Holding the tokens is also one of the ways to vote on which asset to list the Huobi so the new projects will have to spend a lot of time to hold enough the HT to get them listed. Out of the total Huobi token supply, about 40 percent of it or 200,000,000 was withheld by the team. Half of the supply cache is withheld for the user rewards and platform maintenance. The remaining 100,000,000 HT is distributed to the Huobi team vested in four years. Huobi is the best place to buy and sell HT but it is also tradeable on Bibox, Gate.io, and DDEX.
The token is an ERC-20 token on the Ethereum blockchain so it can be stored in wallets that support the tokens including Ledger Nano S and MyEtherWallet.
Storing and Exchanging
The huobi token is that you can store it in a third-party wallet but this way you won’t receive your benefits. In the meantime, the Proof-of-stake cryptocurrencies and airdropped tokens, are not supported all the time by crypto exchanges such as Huobi. Cryptocurrency wallets have a bad reputation since most of the experts recommend that you don’t store the coins in an exchange aside from the necessary minimum. Also, the exchanges are always a good target for crypto hackers.
Crypto exchanges are responsible for the biggest cryptocurrency thefts of all time including the MT. Gox scandal in 2011 and the Bitfinex hack where more than 120,000 BTC was lost. Many of these hacks happened because of beginners’ mistakes that should not have been made by the people who hold your money. However, no system is 100% secure and even Wall Street and the SEC websites have been hacked. Huobi itself had to pick up and move to Singapore especially since China banned crypto exchanges making it illegal for the citizens to withdraw their balances from the exchange.
Huobi’s gameplan appears to be following in the footsteps of digital piracy getting as far away as possible from centralized servers and to reach decentralization. This is why Huobi tries to aggressively expand to other Southeast Asian markets and it even opened an office in Russia. The Huobi group is also trying to expand into the Middle East along with Vietnam and Brazil but also onto the European markets.
The company plans to secure the expansion projections and to forge local partnerships. Huobi has a great track record with investment companies and makes sure to secure VC capital investments as well. The company partnered with the SBI Group for the Japanese expansion and the San Francisco-based trading platform HBUS. Huobi Group is also a partner of multiple Chinese fintech groups that want to implement blockchain and cryptocurrency solutions on the mainland. Back in 2018, the company acquired the blockchain-based electronics manufacturer Plantronics Holding trying to get listed on the Hong Kong Stock Exchange.
Huobi is a cryptocurrency exchange that aims to become the leader in the industry. It’s crypto token is among the most popular ones mainly because of its advantages and goal to expand to new global markets. Despite moving the headquarters in Singapore, the company still cooperates with the Chinese government to advocate for blockchain and cryptocurrency.
Huobi forges multiple strategic partnerships in many countries and expands to major markets such as South Korea, Japan, Europe, and Russia. The token provides a discount of up to 50 percent on transaction fees in exchange for the membership fee and will be periodically brought back by Huobi and burned. The company makes huge successes as one of the top crypto exchanges by trading volume and it is prepared for anything the hackers will throw at it.