Huobi Token (HT), launched in 2018, is a prime example of such a token. As the native cryptocurrency of Huobi Global, HT enhances the user experience by offering trading fee discounts, loyalty rewards, and governance participation. 

With a capped supply of 500 million and a token burn mechanism to gradually reduce supply, HT is designed to be both a functional tool for the platform and a valuable asset for its holders.

What is Huobi Token?

Huobi Token (HT) is the native token of the crypto exchange Huobi Global. It launched in January 2018.

Exchanges release tokens for many reasons, some functional and some marketing. They serve many functions that can form a major part of the exchange's success. They raise money, expand their reputation, and often provide some kind of utility to their users.

Like many other crypto exchange coins, HT offers tangible utility for its holders. HT incentivises users of the platform by reducing trading fees. It can also be used to purchase a special membership to provide even greater discounts. 

HT also acts as a governance token. Token holders vote on key decisions that determine the direction of the business. It also means holders have a level of influence over the platform and, therefore, over their investment.

Key features of Huobi Token

• Utility: HT serves multiple purposes within the Huobi ecosystem:
• Trading fee discounts: Users holding HT can receive significant discounts on trading fees, with potential savings of up to 50% depending on their holdings and trading volume135.
• Loyalty rewards: The token is used in a loyalty program that rewards users for their engagement with the exchange, including access to exclusive events and new token listings12.
• Voting rights: HT holders can participate in governance decisions regarding platform operations, allowing them to influence future developments.

The founders

Leon Li is the founder and CEO of Huobi Group, the global digital asset financial services provider. Li began his career as a computer engineer. In 2013, he founded Huobi Group and transformed it into a leading global player in the provision of financial services for digital assets.

Jun Du is Huobi’s co-founder. Before Huobi, he was a community operations director at Comsenz and worked at Tencent.

What are the Tokenomics of HT?

Huobi Token (HT) has a limited total supply of 500 million.

300 million tokens were allocated to exchange users, and 200 million tokens are held in reserve by Huobi for platform operations, user rewards and incentives. For more on Tokenomics, check out our dedicated series here.

Huobi utilises a token burn mechanism, allocating around 20% of its quarterly revenue to buy back and burn HT tokens. This process gradually reduces the token supply, which can potentially enhance its value over time.

Market presence 

HT can be traded against various cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) across numerous exchanges, enhancing its liquidity and usability in the crypto market.

Current market status

As of now, Huobi Token has a market cap of approximately $102.62 million, with a current price of around $0.43. The token experiences fluctuations typical of cryptocurrencies, influenced by market demand and trading activity on the Huobi platform.

In summary, Huobi Token plays a crucial role in enhancing the user experience on the Huobi exchange through discounts, rewards, and governance participation, positioning it as a key asset for traders within its ecosystem.

What’s going on with Huobi?

Rumours have been circulating that the crypto exchange Huobi is insolvent. We’ll continue to monitor the situation. For now, it seems better to be safe than sorry and not touch Huobi. If you use Huobi, it is wise to withdraw assets until the controversy blows over. It may also be wise to uninstall the mobile app.

Let us know your thoughts below! And for Cryptonary’s transparent opinion on 90+ coins, check out our Cryptocurrency Rating Guide.

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What is the main use of Huobi Token?

The primary use of Huobi Token (HT) is within the Huobi Global ecosystem. HT offers benefits such as reduced trading fees, access to VIP membership perks, participation in governance decisions (like voting on token listings), and use in promotions and platform events. It also serves as a utility token for staking and rewards, making it integral to the platform’s operations.

How can I buy HT?

• On Huobi Global: HT is available for purchase directly on the Huobi platform using other cryptocurrencies or fiat currencies.
• On Other Exchanges: HT can also be traded on supported exchanges where it is listed.
• Wallets: After purchasing, store HT in compatible wallets like the Huobi Wallet or other ERC-20 supporting wallets.

Is HT a good investment?

HT can be a good investment for those engaged in the Huobi ecosystem, offering trading fee discounts and governance benefits. Its token burn mechanism may increase value over time. However, its performance depends heavily on Huobi’s success, and cryptocurrency market volatility poses significant risks, requiring careful consideration before investing.

What happens to HT if Huobi faces financial issues?

If Huobi encounters financial difficulties or insolvency, HT’s value could drop significantly due to its reliance on the platform’s operations.