One of the recently largest and most used cryptocurrency exchanges in China, Huobi has made the announcement that they will be issuing a brand-new token based on the popular ERC-20 standard.
About Huobi Token HT Coin
The token, dubbed Huobi Token or HT was set to start on the 23rd of January 2018. The token would start with a capped supply set at five hundred million. The announcement also indicated that as much as three hundred million of the tokens or about 60% would be issued to new users over the course of 15 days. And the other 40% would be kept in reserve for the operation of the platform as well as various team services and incentives or other undeclared rewards.
The major cryptocurrency player, Huobi also decided they wouldn’t be using an ICO or initial coin offering like normally seen in the industry. They’d instead take the three hundred million and give them to new users who made purchases with the company. The purchases would be of their service fee package that would be sold at a discount on Huobi Pro using the cryptocurrency known as Tether or USDT. The crypto token pegged is pegged in United States Dollar.
Other cryptocurrencies that would also operate the purchase would be the major ones like Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ethereum Classic. The details of the packages are not revealed in full yet. But the company promises there will be a capped maximum limit allotted that a user can buy with a minimum order of HT being one hundred.
The news announces the last move by Huobi while they attempt a recovery for their business after the clampdown Chian made on domestic exchanges that had detrimental affects for a lo of major players in the industry. Leon Li, founder of the Huobi group made the announcement. And it has since then shifted to a new trade model known as OTC or over the counter, it’s designed to hit the major oversea markets.
He also reported:
“We closed the trading book service on Sept. 15 and opened the crypto-to-crypto trading on Nov. 1 in 2017. The volume on Nov. 1 was about four to five percent of that on Sept. 15,” Li said in an interview with CoinDesk. “The impact was really significant.”
Basically, through the newly developed issuance of the token, the Huobi group will be able to better collect fees needed for various upfront services while at the same time raising the level of user retention, according to Li.
“For example, if you purchase the 1,000 HT package, it will only cost USDT 990, and you will get 1,000 HT for free. HT can be used for offsetting the trading fees,” the company said.
Le also stated that the major goal of the company is to make HT essential for serving as the asset that best connects users to the exchanges run by Huobi in different parts of Asia like Japan, South Korea and the United States. The goal is to create major growth and expansion overseas.
It’s expected that registration for the business in the United States will take some time, Li also said. As far as their ventures in Japan and South Korea, they’re scheduled to open sometime in March of this year (2018).
At the same time, HT will be accessible for exchanging and trading on the company’s platform that also supports USDT, BTC and ETH trading pairs with their own token. And because of people’s worry of the nature of potential price volatility, the Huobi group will by back any HT tokens based on the market price indicated during every quarter. This will happen with 20 percent of their net profit during the same period of time.
Additional Notes on Huobi Token
Li has also added that any funds bought back by the Huobi group, will then be kept and stored on a separate Ethereum access for the purpose of reserves. It’s been dubbed the Huobi Investor Protection Fund, and has also been made visible to the general public for the purpose of transparency, something that the company promises to operate with at all times. The new token is something that should be paid attention to this year by any serious investors.