Recently, the issue of own coins has become a very fashionable trend among cryptocurrency exchange exchanges . The exchanges use this method in order to expand the user base and attract more investments.
One of the largest marketplaces in the cryptocurrency market, the Huobi exchange , was no exception and also actively promotes its internal coin Huobi Token (HT). What advantages are the owners of cryptocurrency Huobi Token, we consider later in the article.
What is the cryptocurrency Huobi Token? History of creation
Prerequisites for the creation of cryptocurrency Huobi Token served as a ban on cryptoindustry in China in 2017. It was then that the management of the Huobi corporation had to take urgent measures to rehabilitate the business.
Due to the introduction of regulatory changes, the largest cryptocurrency exchange at that time, Huobi, whose main office was in Beijing, was discontinued. But after only a few months, the Huobi team moved its business to Singapore and launched a new project – Huobi Pro.
If the initial version of the Huobi Exchange was mostly aimed at users of China, then Huobi Pro headed for the international market. Huobi Pro uses the over-the-counter trading model (OTC) and has concentrated in itself all the necessary options for global traders. Despite this, the new project of Huobi Corporation did not show the volumes that the management expected. Trading volumes on Huobi Pro accounted for only 4-5% of the volume of the exchange before closing the business in China.
The “lifeline” in this situation was the decision of the leadership to launch its own cryptocurrency . This initiative was not aimed at creating a new asset for investment, but for the internal needs of the exchange — attracting new traders, increasing the loyalty of existing users, and also returning the exchange's leading positions in the ratings .
The launch of a new cryptocurrency did not follow the standard ICO scheme, which most projects use for the initial launch of coins. At the beginning of 2018, the exchange began to spread the internal cryptocurrency Huobi Token among the VIP users of the exchange. Traders were offered to buy a premium package of services that included a certain number of HT tokens. Becoming an HT holder, traders could use coins to pay commissions and other internal payments. This method of distributing coins was called the initial exchange offer (IEO).
In the first 2 weeks after launch, 60% of the total supply of coins, which amounted to 300 million tokens, shattered among the users of the exchange. The remaining 40% (200 million coins) were reserved by the company for life support of the platform.
The Huobi team also announced the parallel creation of the Huobi Investor Protection Fund (HIPF). In order to contain token inflation, Huobi Pro conducts quarterly repurchase of coins using 20% of its net profit. All collected funds are accumulated on a separate Ethereum wallet and are stored to compensate for any losses that may arise from users in the process of working with the platform.
To ensure the transparency of its activities, the company has opened access to viewing the balance of the HIPF wallet for everyone. Thus, Huobi tried to suppress the cryptocurrency volatility and create the most stable token.
The release of its own cryptocurrency helped to increase the capitalization of the platform and increase the level of customer retention by providing them with exclusive working conditions on the exchange. According to the company's management, the internal token of the exchange was to become a single link between the users of the exchange branches in South Korea, the USA, Australia, Canada and other countries.
The initiatives undertaken have really borne fruit and now the Huobi Exchange is ranked second in the rating of cryptocurrency exchanges according to CoinMarketCap.
By the way, for Huobi there is a large team of very competent developers and marketing specialists. Led by Leon Lee, a former Oracle programmer, the Huobi team has raised the project for the second time and raised it to the top.
Key features of HT tokens
The cryptocurrency Huobi Token is released on the Ethereum blockchain and complies with the ERC-20 standard. To a greater extent, the internal cryptocurrency of the exchange is a loyalty program for traders, so consider what advantages its holders receive.
Reduced transaction fees
The exchange system provides for discounts, which apply exclusively to customers with VIP-status. VIP client status is offered to Exchange users to purchase for the Huobi Token cryptocurrency. The discount depends on the level of your VIP-package, while the owner of the package with the highest VIP-level receives a 50% discount on all transactions that are made during the period of the service package.
The service package has no expiration date. All privileges you receive as long as you pay for a package subscription. This advantage is widely used by large investors and traders with large trading volumes, who through the use of VIP-status can save huge amounts of money on commissions.
Convenient exchange tool
HT makes a trading pair with the most popular cryptocurrencies, so this token is very convenient to use as a medium of exchange for the main cryptocurrencies. The most popular among traders are HT trading pairs with cryptocurrency Tether, Bitcoin and Ethereum.
Promotion of new tokens
HT owners always receive bonus coins from each listing of new cryptoactive assets on Huobi Pro.
Investor Protection Program
Due to the existence of the HIPF fund, all HT holders are insured against financial losses related to the instability of the cryptocurrency market, fraudulent activities or other losses related to the activities of the exchange.
Decision making
HT owners have a preferential right to participate in various surveys and polls related to the life and development of the Huobi Pro exchange. Voting may relate to the inclusion of a new cryptocurrency in the listing of the exchange or other issues related to the development of the ecosystem of the project.
Where to buy and how to store Huobi Token?
The easiest way to get HT coins is to buy them on the Huobi native exchange. You can buy Huobi Token for BTC, BTH, ETH, ETC, LTC and USDT. In addition, the coins are presented on the trading platforms of HitBTC, Bibox, BitMax, Gate.io, Yobit, LBank, etc.
For storage of HT, Huobi Corporation offers users the own development of Huobi Wallet. This is a multi-currency cryptocell , which can be used to store more than 1000 digital coins, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and other cryptocurrencies.
Huobi Wallet has mobile versions for Android and IOS devices. This is a convenient and secure wallet, where users have full control over their assets through personal security key management.
The application has a simple and stylish design. At the same time, users can manage their own account by adding new digital assets as needed.
In addition to a separate application, Huobi Wallet, you can also use the coin storage function on the Huobi exchange. The exchange offers “cold” wallets and protects the assets of its users with the help of two-factor authentication and an anti-DDoS complex.
From third-party applications for storing HT coins, you can use any wallet that supports ERC20 tokens. Among them are Jaxx, Exodus, MetaMask and others. And, of course, the well-known hardware wallets Ledger and Trezor can always help.
It is important to note that by choosing third-party wallets for storing their coins, users are automatically deprived of the right to receive privileges from using the Huobi Token cryptocurrency. Therefore, it is still preferable to use official Huobi applications for storing coins.
Course and Capitalization HT Token
Cryptocurrency Huobi Token started trading on exchanges with a rate of $ 1.49 at the beginning of February 2018. At first, the price of Huobi Token kept at about the same level and did not exceed $ 2.
The most noticeable jump in the HT price was at the beginning of the summer of 2018. After just 4 months, the level of popularity of the coins took off, which in turn affected the rate. At the beginning of June 2018, the HT rate reached its maximum and amounted to $ 6.10 for 1 token.
The dynamics of the course Huobi Token :
As of July 2019, the price of Huobi Token cryptocurrency is $ 4.18, and the project's market capitalization exceeds $ 208 million. Huobi Token's cryptocurrency is ranked 36th in the rating of cryptocurrency by the level of capitalization according to Coinmarketcap.com . At the same time, the average daily trading volume is close to $ 110 million, and this is still a pretty good indicator for cryptocurrency, which is just over a year on the market.
As can be seen from the graph above, at the current moment, the HT rate starts to rise slowly, so from the point of view of investing, the token becomes relevant again. The recent launch of a new product from the developers of Huobi Corporation – a platform for IEO called Huobi Prime, as well as parallel tokenale coins of the Top Network (TOP) – has sparked interest in cryptocurrency.
Despite the fact that the main purpose of HT – the use of traders for intramarket payments, the investment attractiveness of the cryptocurrency Huobi Token is also at a sufficient level. Most often, coins become an object for short-term investments, in particular, the activity of investors increases during the periods before the redemption of coins for the HIPF Fund.
Huobi Corporation does not stand still and regularly launches new products for its customers, thereby keeping users' interest in HT coins. In fact, HT is the embodiment of the success of the exchange, so while we are seeing a growth in capitalization and the development of Huobi, HT will also grow steadily.
Publication date 07/20/2019
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