7 Year Huobi Anniversary Contest: The Huobi Token

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Exchange coins are always a good area to look into when it comes into cryptocurrency as they are a big part of the industry. There are a lot of coins out there and until you can swap them for whatever you want you will need to get fiat in and out of an exchange. Huobi is one of the biggest exchanges in the world and they have their own token which is aptly named the Huobi Token.

How Many Are There And The Price

The Huobi token is a top 40 coin right now and is currently sitting on the number 35 spot on coinmarketcap. This is a big deal as there are a lot of coins that have entered the market over the last couple of years and being on the front page of coinmarketcap is not an easy feat. The price of the coin is currently $4.06 with a market cap of over $800,000,000. These market caps are pretty crazy and shows how much room there is for small cap coins like steem to run if they get a bull run going. There are just under 200 million coins in circulation at the moment with a max supply of 500 million. Looking at the trading history it has been pretty stable between $2 and $4 since May of 2020.

Tied To A Working Product

When you are buying coins it is important that the coin has a working product behind it. This has one of the largest exchanges tied to it so that brings confidence in the long term value of the coin. I see a lot of coins with zero products or business models and they tend to do poorly over the years. Huobi is a top 3 exchange in crypto and with Bitcoin exploding passed 20k there is a lot of money going in and out of the exchange. And with defi everyone know, Huobi Tokens can be used for mining and defi liquidity giving them more value.

Buybacks And Burns

Huobi has a buyback and burn plan with the revenue it makes from the site. Since Huobi is a top exchange with a lot of revenue flowing into it this can do a lot for the coin. The plan is to use 20% of the revenue to buyback coins every quarter and get them off the market. 20% is a good chunk of money. In October there was almost 3 million coins burnt in that month alone.

Why Exchange Coins

BNB has shown how well it can do in a bear market. Exchange coins do well in both bear and bull markets as they have a working product with money coming in. It does not matter how much coins cost as long as people are trading them exchanges can do well. And when coins are up a lot and the markets get busy then you will see a lot of money go through them.

Huobi Token has a lot of perks and with a buyback plan which is backed with revenue of one of the largest trading sites in the world there is a lot of reasons to look into the coin.

This is not investment advice and please do your own research. Like always only invest with money you can afford to lose as crypto is high risk.