CoinMarketCap takes a deep dive into Huobi Token, a native token of a popular cryptocurrency exchange, Huobi Global.
Huobi Token (HT) is the native cryptocurrency of the Huobi Global exchange. The exchange was founded in China in 2013 but then moved its operations to Seychelles for more friendly crypto and finance regulations. It became a popular option among those seeking to enter the new world of crypto that lets users invest in projects through trading and Initial Coin Offerings (ICOs). Huobi followed Binance’s path by releasing the exchange token in 2018 that facilitates on-platform governance, rewards, and special event access.
Founders of Huobi
Huobi was co-founded by Leon Li, a former computer engineer at Oracle. Leon Li was a Bitcoin supporter from the early days and wanted to introduce blockchain and crypto technology to more people. The other co-founders of the exchange are Jun Du (CEO of Node Capital and BiKi.com) and Herbert Rafael Sim, founder of Crypto Chain University and media powerhouse with a history at Forbes, Huffington Post, and more.
Huobi now operates Huobi Global, Huobi China, Huobi US, and has acquired other tools, like Quick Wallet, to offer convenience to its customers. The Huobi Token has played a large part in one of the biggest crypto exchanges in the world, with a daily trading volume in the billions.
How Does Huobi Token Work?
The Huobi Token works to provide Huobi Exchange users a better experience with new ways to get a discount on trading fees, access new cryptocurrencies, and vote on decisions about the future of the platform. With HT, exchange users can directly benefit from how well the platform does over time. If Huobi continues to move up in popularity, HT holders will see their accounts rise as well.
The Huobi Token is part of the Huobi Eco Chain that hosts DeFi apps like decentralized lending and borrowing platforms. The Eco Chain is similar to the Binance Smart Chain, an established exchange-based blockchain.
HT is an ERC-20 token that acts to secure the network and provides benefits and transaction methods for Huobi users. It acts much like Binance Coin (BNB) on the back-end. It also has similar tokenomics like BNB’s buyback or coin-burning strategy. Using this method, Huobi utilizes 20% of the revenue generated from contracts to buy back HT from the network and removes it from circulation to increase its value.
There is 500 million HT in total, with 100 million reserved for platform operations and user rewards. 100 million tokens are held for the Huobi team as incentives, and 300 million HTs were given away so users could purchase points cards (the giveaway is now over).
What Makes Huobi Token Unique?
The Huobi token has a few unique benefits for users, but it is mostly a way to keep up with the evolving economics of the crypto exchange business. It was created in part to keep up with Binance and its native BNB token. The Huobi Token will provide a common or uniform method of payment across the ecosystem. It will also be used largely in OTC trading and corporate payments.
The Huobi Token currently ranks 50 on CoinMarketCap (at the time of writing) and has gained tremendous value since its release in 2018. In the beginning, HT was trading at around $1.30 USD. During the all-time-high period in 2021, it reached a price of nearly $35 before stabilizing. Many are optimistic in their future price estimates since native tokens of other exchanges have also performed well.
The Future of Huobi Token
As more people become involved in crypto trading, Huobi will benefit and grow along with the industry. It also provides a compelling loyalty and rewards scheme that will position it well in an increasingly competitive crypto exchange industry.
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