Huobi Token (HT) Review: A Global Exchange Token Targeting Large Investors
|Available Discount||1% per 1000 KCS|
|Withdrawal Fee||Varies per token|
The Huobi coin is the ERC20 token for the Huobi Pro cryptocurrency exchange, one of the largest bitcoin exchanges in China. The Huobi token was developed to offer low transaction fees to users and enable new tokens to be listed on their exchange with a point system, while at the same time maintaining stability while doing so. The Huobi Token aims to become a major asset of exchange for users all over the globe.
Table of Contents
Why the HT Token is Unique
The Huobi Pro Exchange developed its own HT coin for a number of purposes. First, it wanted to offer lower transaction rates in the market. In contrast to Binance, which offers lower fees across the board, Huobi Pro only offers lower fees to those who subscribe to the platform. Although the transaction fees of 0.2% is not as low as Binance’s 0.1%, Huobi’s frequent users can have a VIP subscription which matches Binance’s low transaction fees. This is significant when taking into consideration that Binance’s low fees are limited to a five-year period.
Second, it wanted to offer a way for teams to vote to be listed on Huobi’s Autonomous Digital Asset Exchange (HADAX). HADAX was an exchange created by Huobi as a way for users to invest in other potential tokens in the world without being listed with an evaluation of their investment value. Instead, users vote for tokens to be listed on the exchange. HADAX performs a minimal audit on these tokens, evaluating them for only authenticity and legitimacy (not value). Teams that want to be listed on HADAX must pay a deposit in HT tokens. This deposit is supposed to pay users back if delisted for any reason, legitimate (e.g. a fork) or not (e.g. exit scam, hack).
Finally, Huobi wanted to create a token with as much stability as possible. As such, it maintains a buyback policy in which it uses 20% of its profits to buy the open tokens in the market during particular period. This is meant to prevent token inflation in the future.
How the Huobi Pro Exchange Works
Huobi Pro, once the largest cryptocurrency exchange in China before the government ban on cryptocurrency exchange, moved from China to Japan at the beginning of this year. Its headquarters are now in Singapore. It is now expanding its offices to South Korea, Japan, and the United States.
Huobi Pro’s exchange has a number of advantages, including: low transaction fees and high attraction by large investors and networks across Asia, Europe and North America. As a result, the exchange is available for use in multiple languages (including English, French, German, Turkish, Japanese, Korean, Chinese, Vietnamese and more) and the company offers as 24/7 multilingual support.
As mentioned, the trading fees on Huobi exchange are .2%, and VIP discounts are available which give discounts that range from 10% to 15%.
The Huobi Pro exchange has a number of partnerships, including:
|SBI Holdings – The exchange entered into a strategic partnership with SBI Holdings, one of Japan’s largest financial institutions. SBI now holds 30% of equity in Huobi Technology Japan Co, Ltd and 10% of their Korean entity. This partnership will prevent future conflicts between the platform and Japanese banks, as well as enter the South Korean cryptocurrency market. These markets have been calculated to be 40% of global bitcoin trades, and 10% of global Ethereum trades.|
|NewMargin Capital and Kiwoom Securities – NewMargin Capital, a Beijing-based venture firm, and Kiwoom Securities, a South-Korean online brokerage firm, partnered with Huobi to start an investment fund to support blockchain enterprise in China and South.|
|Korea University – The university has partnered with Huobi to encourage cooperation in blockchain development, including technology research and technical education.|
|DigitalX100 – Huobi entered a strategic partnership with DigitalX100, a FinTech4Good blockchain incubator in Washington DC that will work with Huobi Labs to help blockchain start-ups improve their strategy and make a bigger impact on the world.|
The HT Price History
The Huobi token launch started on January 23 with a total supply of 500 million tokens. Only active participants in the platform were able to receive the tokens. The token launch price was $1.52.
The tokens reached a high of $5.38 in May and $6.10 in June of this year.
The company has announced a buy-back policy in which it buys back HT based on its market price every quarter using 20% of its net profit during the same period. The company announced the first buyback on April 16 and reported locking a total of 70.4 million HT .
These funds will be stored in an Ethereum address, the Huobi Investor Protection Fund. These funds will be made available to the public.
How to Purchase HT
At the present, you can purchase the Huobi token through the Huobi Pro exchange.
The token is available for purchase on Huobi with the following coin pairs:
- Huobi (trade HT with USDT on Huobi)
- Huobi (trade HT with BTC on Huobi)
- Huobi (trade HT with ETH on Huobi)
- Huobi (trade HT with ETC on Huobi)
- Huobi (trade HT with BCH on Huobi)
HT is also available through the Huobi exchange with IOST, DASH, LTC, and XRP.
Transaction fees on Huobi Pro are 0.2% but can be cut by 50% for users who wish to subscribe to the platform and purchase a VIP membership.
How to Store HT
You can store your HT on the Huobi Pro exchange. For security purposes, however, it is best not to store your cryptocurrencies on any online exchange.
You can store your HT on the Huobi wallet, which is available on GooglePlay. You can also store it in any wallet that supports ERC-20 tokens such as Coinomi, MetaMask and MyEtherWallet. The safest alternative, however, is a hardware wallet such as Ledger Nano S and Trezor.
How the Value of HT May Steadily Increase
HT has several methods for maintaining the valuation of their currency. First, it offers trading fee reductions, giving an incentive for more and more people to use their token, which in turn increases the demand for HT. VIP subscription holders, for example, can save up to 50% in transaction fees. This incentive will continue indefinitely, unlike BNB’s fee reduction plan which expires after 5 years. Second, it has a buy-back policy which involves using 20% of its income to buy back any Huobi tokens in the open market. These tokens are then allocated to the Huobi Investor Protection Fund. This fund is used to protect investor’s benefits and to compensate for risks in the platform, such as unexpected hacks or a collapse of a particular currency (such as Tether, which Huobi supports). This helps to ensure greater market stability as well as the interests of investors.
Finally, the Huobi tokens are only available by purchasing Point Cards, Huobi’s pre-paid card for charge-trading fees, on the Huobi Pro exchange. These points will be used for all sorts of purchases, but the most basic use will be for discounts on trading fees. Of the 500 million total tokens available, 300 million will be used as gifts for purchasing Point Cards.
These benefits are all designed to attract bigtime investors who trade large volumes of cryptocurrencies. These investors will occasionally make huge transactions and limit the amount of points in the system, which will also reduce the number of Huobi tokens, keeping the token valuable in the long-term
Future Aspirations of Huobi Pro Exchange and HT
Huobi Pro recently announced the launch of a crypto-based exchange traded fund
(ETF) called Huobi 10 and a new public blockchain, the Huobi Chain Project. It has also recently announced a new digital currency trading marketplace in the United States via HBUS. HBUS has announced that it is the exclusive US strategic partner of Huobi.
The ultimate goal of the Huobi token is to become an asset for users on Huobi exchanges, regardless of whether they are in Japan, South Korea, the US, or any other location in which the exchange decides to expand.