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Popular Cryptocurrency Exchange Huobi Announces Digital Token

Popular Cryptocurrency Exchange Huobi Announces Digital Token

Reading Time: 2 minutes by on January 31, 2018 Altcoins, Business, News

Huobi Global, a popular cryptocurrency exchange based in Singapore, officially started issuing the Huobi Token (HT) starting from on January 23, 2018. To begin with, only 500 tokens will be offered by the company.

The press release indicates that 300 million tokens will be sold to investors over the 15 day period starting 23 January, while the rest of the 200 million tokens will be reserved as user incentives or team rewards.

Furthermore, Huobi is stressing on the fact that its token is not being offered as an Initial Coin Offering. The company maintained that only active users of the trading platform will be able to use HT. Users can get tokens by purchasing a ‘Point Card.’ The Point Card is Huobi Pro’s prepaid card for basic service charge. Users can use HT coins to pay

HT is a bonus system based on Ethereum ERC20 blockchain protocol. It also employs the smart evaluation model. Huobi’s website defines it as a sophisticated model providing analysis for entire blockchain system.

On the first day of the launch, on January 23, all tokens were sold out within the first minute itself. The tremendous demand for HT demonstrates that users are confident in the future development of Huobi as well as its investment potential.

Other cryptocurrency trading platforms also offer their own virtual currencies that can be used on their exchange. Binance, currently the world’s largest cryptocurrency exchange with over $6 billion worth of trade volume in an average 24-hour period, has its own Binance Coin (BNB). At the time of writing this article, each BNB is valued at approximately $11.86. Cryptopia’s Dotcoin (DOT) is another example.

Since its ICO six months ago, the value of Binance’s BNB token has risen by more than thirty percent. Unlike Huobi’s HT, the Binance ICO launched alongside the exchange itself. BNB is also an ERC20 token built on the Ethereum blockchain, with a total supply cap of 200 million BNB. After that point is reached, no more coins will be mined.

A typical cryptocurrency exchange works as a matchmaker for buy and sell orders with matching price quotes. The seller in question puts forth an ‘asking’ price to sell a particular amount of his coins. The exchange then matches their order with that of a buyer who has a ‘quote’ price equal to the seller’s asking price. The instant an order is matched using this system, a trade will get executed and finalized on the exchange.

Huobi, the largest cryptocurrency exchange in China has also announced plans to move into Japan and South Korea in the near future. The shift in regional focus for the company could be mainly beneficial to not only its digital token but also to the exchange as a whole. After all, the Japanese and South Korean cryptocurrency markets account for approximately 40 percent of all global bitcoin trading activity and 10 percent of Ethereum trades. In 2017, Japan announced that it would accept bitcoin and cryptocurrencies as legal tender in addition to recognizing digital tokens as currency.

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