Huobi, which is one of the largest cryptocurrency exchanges in the world, operates a cryptocurrency called HT The Huobi Token (HT) helps reward Huobi exchange users for their loyalty by reducing transaction fees HT aims to bring more value to millions of Huobi users, mainly located in Asian countries, the Huobi Token (HT) has many characteristics that allow it to rise to the ranks of high-potential digital currencies.
What is Huobi Token?
As mentioned above, the Huobi Token was created by a Chinese cryptocurrency company (currently based in Singapore) called Huobi. And like all cryptocurrencies of this type (exchange platform digital currencies), HT digital currency offers a series of perks on the platform.
The coin’s price is supported by a program of buying and burning coins at quarterly intervals. These burns are funded by 1/5 of the gains generated by the Huobi Global and Huobi Contract platforms.
HT is a cryptocurrency built according to the ERC-20 standard of the Ethereum blockchain. The situation could change because Huobi may develop its own blockchain called Huobi Chain, a project announced in June 2018.
The first HT sale is different from the traditional ICO. To get it, users had to join the VIP Service Package. Huobi also collected the service fee in advance, lowering the price in return.
00 million were put up for sale, excluding VAT, up to a maximum of 500 million (+100 million for employees and +100 million for users and platform operation).
HT is Pursuing a Primary Marketing Objective for Huobi
Huobi Token is an exchange cryptocurrency like BNB, a cryptocurrency of the Binance exchange. The main function of the coin is to retain users and encourage the arrival of new users. Huobi’s CEO has also revealed that due to restrictions imposed by Chinese regulations on cryptocurrencies, the trading volume on the platform has dropped by almost 90%.
Gradually, the level of activity on the platform returned to normal, and the Huobi Token creation was a great opportunity to boost user engagement. By purchasing the service package, users can earn points. These points can then be redeemed for digital tokens at the rate of 1 point = 1 digital token.
The launch of the Huobi Token cryptocurrency went hand in hand with the announcement of the creation of a mutual fund that would divide ownership of the underlying asset into units.
Benefits of Digital Currency HT
The benefits of the Huobi Token cryptocurrency are largely equal to those of other digital tokens of the same type. The main difference comes from the fact that the perks associated with the Huobi token are not permanent as it is based on joining a group of VIP services. Accordingly, the user’s privileges are reduced if he chooses not to renew his membership.
The Huobi platform allows its members to take advantage of many advantages, most notably: Reducing transaction fees and costs
The minimum discount rate is set at 10% and can go up to 50% for the highest VIP level, i.e. level 5. This discount can be very beneficial for large portfolios, for which this discount is large enough to affect operating results.
The Huobi Token was instantly redeemable for Bitcoin, Ethereum and Tether (USDT) upon launch. Those who own Huobi Tokens have the opportunity to receive free digital tokens when the new tokens are distributed in the form of an airdrop like most digital tokens that carry the utility Huobi Token has a buy-back mechanism.
Quarterly, Huobi will allocate 20% of its profits to buy back cryptocurrencies. This mechanism will allow them to better control the liquidity and price of cryptocurrencies in the long term. The winnings will be paid into a fund to compensate users’ losses and protect them from potential manipulation or fraud.
The Huobi digital currency also provides voting rights and thus grants the possibility to participate in the platform’s management. This voting right may be exercised to select new cryptocurrencies to be included in the trading platform.
In theory, this is a democratic way to solve the asset selection dilemma. In fact, it is necessary for investors who wish to list their tokens on Huobi to own a large number of HT tokens and vote for themselves, which is a powerful mechanism for stimulating demand for HT.
Who is the Team Behind the HT Cryptocurrency?
Leon Li is the founder and CEO of Huobi Group. After graduating from Tsinghua University (Department of Automation), he became a bitcoin supporter in 2011. Li started his career as a computer engineer at Oracle, the world’s largest database provider.
In 2013, he founded Huobi Group, took over the company, and turned it into a leading global player in providing financial services in cryptocurrency.
John Du is the co-founder of Huobi. Before his role at Huobi, he was Director of Community Operations at Comsenz and worked at Tencent. Additionally, Du is the CEO of Node Capital (a venture capital firm.) Finally, he co-founded companies, including AToken and Chainup, among others.
Can HT be Mined or Staked?
HT coin is compatible with the staking mechanism of cryptocurrencies that can be used in a Proof of Stake (PoS) blockchain. Proof of stake is the consensus mechanism at the base of the blockchain to ensure that transactions work correctly.
Staking gives owners decision-making rights over the network. Thus, they can vote on governance decisions and generate income from their cryptocurrencies held in specific wallets that support the staking mechanism.
Staking involves placing cryptocurrency on a Proof of Stake network. The digital currencies are either held in a native wallet of that network or locked in a smart contract to run the nodes. Invested cryptocurrencies are used to validate transactions, run nodes, and maintain the health and security of the blockchain.
Profits depend on the number of staking cryptocurrencies. Unfortunately, the Huobi Token cryptocurrency currently does not provide an opportunity for storage and staking. Therefore, it is impossible to take advantage of this property by investing in it.