In my first part of my post, I introduced Huobi exchange and how to get started on Huobi exchange. Also a lot of post have been written on how to trade on Huobi so in this post, I will be taking on Huobi Token (HT).
Introducing Huobi Token (HT)
Huobi Token is an Ethereum based (ERC-20) token built for the Huobi Ecosystem which includes the exchange, the pool for mining and locking and for other purposes. Just like exchanges such as Binance have their coins, so thus Huobi Token exist on the Huobi ecosystem. The token was released in January 2018 as Huobi Native token and since there was no ICO, users got the token by Huobi Loyalty Point. 500 million HT was minted and this was shared in ratio of 3:1:1 where 300 million tokens are in circulation to the public, 100 million held for the team, and 100 million used as users’ incentives. The coin is currently sold at $4.04 and it is the 34th currency based on market capitalization. Huobi token has a lot of use cases and this makes the coin very valuable.
Discount on Transaction fees
With Huobi Token, traders will get reduction in transaction fees. Transaction fee on Huobi is on the high to about 0.2% of the coin traded but traders can get reduction depending on the number of Huobi Token the trader holds. The more the token held, the lesser the fees to be paid on transaction.
VIP Community
Owning Huobi token gives users the pass to become a member of the Huobi VIP community. Being a VIP member comes with a lot of advantage such as reduced fee on transactions,
Voting for Listing
Holders of Huobi Token can participate in voting for coin listing at the Huobi Autonomous Digital Asset Exchange (HADAX). Also, they get tokens for holding HT on Huobi when a coin is listed.
Huobi Token Burning
Huobi Token has gradually been reducing in circulation thanks to the Burning of tokens by the team after they are bought back with 20% of the total profit on a monthly basis. A total of 226,080,500 HT has been burnt which leaves a total number of 273,919,000 HT in existence and a total number of 214,755,000 HT in circulation.
Huobi Token Future Speculation
The market is determined by demand and supply and it has been proven without reasonable doubt that buybacks are often a very good push to the rise in coin as the demand increases and the supply is less available. Also, Huobi has a lot of investors which also makes the token attractive to investors as well thereby causing demand for the coin. Investors in new coins to be listed on huobi and the willingness to get listed on huobi will also create a reason to buy the coin. There are several usecase for HT and this would surely cause a rise in demand of the coin.
Conclusion
I started keeping a Huobi Token (HT) as part of my portfolio due to its numerous uses and the fact that it is becoming fewer in circulation. Never underestimate the power of an exchange owned coin because the exchange always have income to do a lot of buybacks compared to non-exchange coins.
Thank you for taking part in the Spotlight on Huobi Challenge.
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The Steemit Team
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