With the growth of the cryptocurrency market and the rise in popularity of certain exchanges within the crypto-sphere, a number of exchange tokens have been introduced by platforms looking for a convenient way to increase liquidity. They do this by providing some additional value for holders of their native tokens, which can be discounts and fee reduction etc. among other things. With major cryptocurrency exchanges such as Binance and Huobi offering native tokens, the market is filled with native tokens for use in various exchanges worldwide.
What Is Huobi Token (HT)?
Just like the other major exchanges, Huobi Pro has also introduced a native token for their platform called Huobi Token (HT). Being one of the leading cryptocurrency exchanges has certainly played a key part behind this decision. The platform, which was founded back in 2013, has experienced significant success especially in the last couple of years. Industry heavyweights and marquee VCs like Sequoia Capital have also started investing the platform.
At the time of writing, Huobi Token is valued at $4.59 USD according to coinmarketcap, with a total market cap of $229338, 665. When we put it into the context of Huobi’s large daily trading volume, which currently stands at $1,058,516,005 USD at the time or writing, one can clearly see the reasons behind Huobi Token’s increased usage.
The Huobi Token was introduced with some interesting use cases in mind, including fee reduction, the ability to act as a security deposit for becoming a certified OTC trader on the platform, among other functions. Huobi Prime, which was also launched by Huobi, further incentivizes holding the Huobi token for certain platform requirements.
What Does HT Offer Its Users?
Huobi Tokens (HT) is based on a point system related to blockchain distribution and management. It is similar in nature to other platform tokens such as Binance Coin, albeit with some notable differences. Holders of HT are thus benefitted in several ways, some of which are described in brief below.
- The total amount of HT is fixed at 500 million, never to be increased again. The platform has thus decided to allocate 300 million worth HT to users as gift, which they can then use to purchase point cards on the Huobi platform.
- Huobi Pro has decided to use 20% of their income for buying back the Huobi Tokens from the market. The tokens will then be allocated towards a special Huobi Investor Protection Fund. This fund is used as a way to protect investors by compensating their losses due to any risk on the platform.
- Huobi token holders can save up to 50% in transaction fees by using HT for purchasing different levels of VIP statuses on the platform.
- Huobi Token holders are entitled access to certain exclusive events such as receiving newly listed tokens from the platform.
- The Huobi Token can be traded in Tether, Bitcoin and Ethereum markets.
- One of the most important aspects of HT token holders is level of support provided to holders. HT holders have specific opportunities to let their voices be heard by taking part in surveys and other decisions on the platform by voting.
How Does HT Compare to Binance Coin?
Comparisons between the Huobi token and Binance Coin have been drawn from an early stage due to the similar nature and purpose of the two tokens. However, unlike Binance Coin, the value of HT is more tied to the coins supply and demand drivers inside the Huobi ecosystem, rather than on the performance of the Huobi. Pro exchange. They certainly have some significant differences, with Huobi Tokens having some definite advantages over Binance’s BNB Coin. Some of these are listed below as follows.
- Huobi Token Allows for Voting during Coin Listing: Huobi’s Autonomous Digital Asset Exchange or HADAX, allow users to vote for projects they desire to be listed, following which Huobi performs a minimal audit and some other steps to ensure that the project is compliant.
- Huobi Token Holders Receive Free Tokens: Unlike its counterpart in Binance, the Huobi token allows users to receive free tokens from the new listed projects on the platform. This encourages users to vote and the listed projects are allowed to create their own reward mechanism for the voters.
- Subscription based Fee reduction: Unlike Binance Coins, where holders have access to reduced fees from the moment, they acquire them, Huobi Tokens have a subscription scheme in place. The scheme consists of five tiers which allow for different percentages of reduction according to users who subscribe to them. Thus, even though the current Huobi fee is more than that of Binance, users subscribing to the VIP fifth tier would have access to fees which match that of the Binance platform.
Thus, the Huobi token includes various use cases and benefits which are driving the demand behind the token and provides more benefits in certain aspects.
What Does The Current Huobi Exchange Offer Its Users?
Huobi Pro still maintains its spot as one of the leading exchanges by volume. Since its launch it has already made in rows into the South Asian cryptocurrency market, which forms a substantial part of its user base.
With more than 60 cryptocurrencies offered, Huobi still offers a high level of liquidity as compared to other exchanges. They have reward systems in place which are based on referrals. With a very helpful online community, a responsive customer service and multi-language support, Huobi is definitely at the forefront of crypto –exchanges in the current market. At the time of writing, the BTC/USDT, ETH/USDT and EOS/USDT are the most highly traded tokens on the platform, with daily volumes of $403,026,264, $112,529,687 and $90,611,034 respectively.
Closing Thoughts: Is The Huobi Exchange Poised To Succeed or Fail?
Huobi has many security protocols in place to offer maximum protection to their user’s funds on the platform. It is also important to understand that ICOs that have many users “HODLing” require HT tokens in large numbers, which in turn increases its demand consistently, thereby increasing in value. At a time when security and liquidity are two major factors which exchanges are tackling, Huobi Pro seems to be doing well in both aspects and is expected to grow even more in the future.
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