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As cryptocurrency exchange companies are considering it necessary to launch their own tokens, it is important that crypto users get familiar with these coins before making investment decisions. Here is a guide on a leading crypto exchange native token, Huobi Token.
There are thousands of cryptocurrencies in the market, and the evolution of each digital asset resulted from different reasons and motives. Relatively, cryptocurrency exchanges are also seeking it fit not only to offer trading and investment services to crypto users but to also make their platform’s token available for users. These native tokens serve diverse purposes which are dependent on the platform’s motives for launching them. However, they are basically created to make the exchange’s values tradeable in the market. One of the tokens worth considering is the Huobi token (HT).
Huobi Global is recognized as a leading cryptocurrency exchange as it hosts hundreds of digital assets on its platform. The company has been efficient in its services to users while offering an amazing trading experience as it supports more than 280 cryptocurrency markets.
Huobi Global also sought to make its values tradeable in the crypto market for its users across the globe. Besides, it was considering other means to better serve them, and also reward them with reduced transaction fees. This triggered the company into innovating its own digital currency, dubbed Huobi Token.
As designed by the team behind Huobi Global, the Huobi token (HT) is a decentralized ERC-20 cryptocurrency that is built on the Ethereum (ETH) network.
Huobi Token launched in early 2018 when the Huobi team sought to further expand the growth and development of its platform with a flexible market strategy that is capable of gaining the interest of new gross users.
Huobi Token originated through the existence of its mother platform, Huobi Global. Thus, the founders of the token are also founders of the crypto exchange. The platform was a brainchild of a team of two crypto veterans, Leon Li and Jun Du. Both were Bitcoin (BTC) advocates and experts in 2013.
Leon Li became the manager at Huobi after its founding, hence making it a financial service provider in the crypto ecosystem. In 2018, the team further welcomed another professional in the crypto field into the Huobi ecosystem, Herbert Rafael Sim. Thereafter, Sim began to operate as the public relations director of the company.
As Huobi appeared in China, it also experienced restrictions caused by the regulators of the nation at that time. Thus, it innovated the Huobi token and distributed it to Huobi VIP members in response to the limited crypto activities and the crypto ban the country enforced. This way it could expand its users base regardless of the regulatory restrictions in the country. Members could then exchange the token with other cryptocurrencies of their choice.
Huobi token runs on the Ethereum network and can be exchanged on any ERC-20 network.
With efforts to eliminate loopholes that could expose users to financial losses and manipulative schemes on the platform, it deployed certain necessary infrastructures capable of securing the activities executed with the token and on the platform generally.
The platform adopts an asset protection system to protect the finance of its token holders. The system is known as Security Reservation Mechanism.
Huobi seeks to efficiently secure the financial activities executed on its platform following goals to become the leading cryptocurrency exchange in the globe.
Thus, Huobi also seeks to secure the accounts and assets of its users by deploying a risk control system “Don’t Be Evil”.
You can store Huobi tokens on its official wallet powered by Huobi Global. This wallet can accommodate a large number of diverse cryptocurrencies as well as ERC-20 based tokens.
Interestingly, storing Huobi tokens is not limited to its official Huobi wallet. You can store Huobi tokens on any wallet that supports ERC-20 tokens since the token itself is one of such.
However, there are restrictions to the benefits when storing on third-party wallets.
This can only mean that the best place to store Huobi tokens is on the Huobi platform itself. This way, users can enjoy optimum benefits that come with using and holding the token.
The distribution of the Huobi token commenced immediately after its launch in January 2018. The token distribution lasted for about a month. It saw the token’s distribution with an impressive and massive number of trades. The company supplied a total of 500 million Huobi tokens to the market.
During the distribution, the company allocated 60% of the total supply (300 million Huobi tokens) to members of the exchange, especially those who purchased packages.
The remaining 200 million tokens in circulation, or 40% of the total supply of Huobi tokens, remained in the company’s custody. Their purpose is to satisfy other services, basically reward purposes. The company reserved 100 million Huobi tokens out of the remaining 40% of the total supply to reward loyal users of the platform.
Meanwhile, the other 20% of the tokens went to reward the platform’s team members.
After several progressive years, the token attained an impressive trading price as of mid-2021 and traded for $8.38 at that time.
Following the motives behind the invention of the Huobi token, users of the token have diverse benefits. These advantages have attracted the interest of new users over the years. Some of the benefits include:
The platform allows users with VIP statuses to enjoy a series of discounts while trading the token. Users can also use the tokens to purchase different levels of VIP statuses. This way, investors and traders can save a portion of their funds through commissions offered to them.
The platform uses the token to facilitate a protection program for investors. When users experience financial losses or fall victim to manipulative schemes, the platform apportions tokens to the investor protection fund to insure them against these unfortunate circumstances while compensating them.
Users who hold and use the Huobi Token have exclusive voting rights on the platform. Holders can impact changes on the platform and make influences on the exchange decisions as well asset listing decisions. Asset-creating projects can as well benefit from the influence of holding the token as it gives them chances to have their assets listed on the Huobi exchange. Moreso, holders also enjoy rewards of Huobi tokens after listing new assets on the exchange. Sometimes they also receive wallet bonuses.
The platform in its exclusive and efficient services it offers to the public makes transactions easy for users. Users do not need to perform complicated activities to trade assets or exchange the token for other assets on the platform. Thus, Huobi is creating a convenient trading experience for users.
Huobi Global has been successful in its operations since its founding. It appears that the token is as well threading the same successful path with its mother platform.
With its aim of rewarding users and providing exclusive voting rights for users alongside an easy transaction process, Huobi Token is becoming the choice of many crypto investors and winning their interests. It has become a rival to Binance’s native token, BNB.
Huobi token is a decentralized ERC-20 cryptocurrency that is built on the Ethereum network.
Huobi Token appeared through the desire of Huobi Global to make its platform’s value tradeable, which would foster further adoption from the masses.
Huobi Token is used to perform transactions on the platform as well as rewarding users and members of the platform. It can be used to exchange other assets listed on the platform.
Huobi token is best tradeable on the Huobi exchange. However, it can as well be traded on exchanges that support ERC-20 tokens.
Huobi token offers users the benefits of discounted transaction fees as well as rewards. It offers users voting rights and typically provides them with a convenient trading experience.
Yes, the Huobi token is very safe to invest in as the platform deploys several measures to secure the finance of its investors as well as ensuring them against financial losses.