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Huobi Token. History of one cryptocurrency

2019-12-24

About Huobi Token

Huobi Token (HT) is a unique token from the world famous cryptocurrency exchange Huobi Pro, based on the ERC-20 standard. It allows you to reduce the commission for trading operations on the platform, and also takes part in the formation of the points system in the process of adding new coins to the exchange.

The launch of its own coin by an already popular company is due to several factors. The cryptocurrency made it possible to launch its own loyalty system on the resource, allowing participants to enjoy various privileges: reduced commission, bonus systems, VIP-class referral programs.

Also, tokens can be used as assets for voting on the exchange. Since Huobi HADAX helps promote promising projects that are not listed in the main resource, the list of the best is formed precisely through voting. That is, users choose the tokens that they would like to see presented on the exchange, paying for a test drive to the creators. This is a kind of investment in the development of the main project.

For those companies that want to exhibit their project, it will be necessary to make a certain amount of the deposit. It acts as a guarantor for users in the event of delisting.

Another reason that prompted the creators to present their own token is the desire to design a stable and promising currency that will be interconnected with the main project, the exchange, to help in its development, preventing inflation.

Huobi Token is a young project. Back in early 2018, it was possible to purchase 1000 tokens for $ 990, that is, the cost of one coin was 99 cents. A month later, the value grew to almost $ 1.5, since the token was presented in the public domain on the market. Another growth was seen in the first week of trading, and the interest of the cryptocurrency public and traders raised the value to $ 2.37. The next few months, the currency showed the expected results: there were no sharp jumps, the price remained stable.

But in May 2018, there was an unexpected surge. Then the price increased to $ 4.27, and the capitalization managed to grow to 213 million. In response to this, the creators decided to correct all processes, which contributed to a slight drop to $ 3.75 and a decrease in capitalization to 187 million. A similar situation was repeated in early summer: first, the cryptocurrency reached its all-time high - $ 6.1 and a turnover of $ 300 million, and then again dropped in price by 30%.

The great start and perspective attracted new users, but this instability, which had emerged over a short period, also repelled them. By the fall, such leaps had stopped, but the digital currency had already begun to fall in the rankings. Capitalization fell to 80 million, the price fluctuated around $ 1.77. The beginning of 2019 was not promising: the stagnation not only lasted, but also worsened, reducing the turnover to 40 million, and the cost of the coin to 90 cents. One of the factors that provoked such a failure was the closure of the companys office in Australia, because users were simply afraid to invest in a scandalous and unstable project.

This gave the developers new goals. Already in early spring 2019, the company announced its intention to release the Houbi Prime platform, which would give cryptocurrency owners access to choose among other coins and become their first buyers. Of course, this could not fail to attract participants, so all indicators began to grow rapidly. By mid-March, the exchange rate settled at $ 1.8, and by the end of the month it reached more than $ 2.5.

Many critics at this moment expected another failure of the company, but the creators skillfully prevented panic by presenting new projects. It was the mechanism for working with a collective dispersed economy - the NewTon Project. A month later, information appeared about the Reserve Protocol - a resource for interacting with stablecoins. Summer - FastTrack - user voting system for listing new coins. All this to a large extent allowed to consolidate the position of the coin in the world market. Therefore, the current performance of the coin varies around $ 4. The latest data points to an attractive positive trend: the cryptocurrency made it into the CoinMarketCap rating at 37th place, although at the beginning of the year it could not even be classified in the top 50. The current exchange rate is more than $ 4.7 with a capitalization of 240+ million and positive daily dynamics.

Huobi Token Features

Since the HT coin was created as an internal cryptocurrency of the site, aimed at solving the problems of the exchange, its functionality is limited to transactions within the same network, there is no use for external payments, purchases, etc.

Huobi itself is a platform originally from China, which for a long time acted in favor of the local market, but serious problems arose in 2017, when the countrys government decided to regulate processes in the field of the crypto industry. The first stage is the prohibition of ICOs, the introduction of restrictions on the functioning of trading platforms on which various digital assets are presented. Then similar sanctions were applied to Huobi. Their office had to be moved from Beijing to Singapore. These bans affected the attendance and success of the project.

The company was soon renamed Huobi Pro and then Huobi Global. The new version of the development was supposed to help establish trade financial ties between Asia and America. But the situation was disappointing. The trading level fell, which led the company to the decision to create a currency.

It is important to say that cryptocurrency is not automatically credited to the accounts of participants, for

the loyalty program must be paid. Account replenishment is carried out monthly, determined by the account level. For example, the initial payment is 120 coins and gives a 10% discount, and level 5 users are forced to give 12 thousand coins, but this reduces the commission for operations in half.

Coming back to the instability in the state, the company decided not to conduct an ICO in favor of IEO, and the named VIP-regime was put into effect at the end of January 2018. Then the minimum package contained 100 coins. 60% of the presented coins sold out in literally half a month, because crypto traders responded positively to the projects instruments and began to buy up currency in order to use it to pay commissions on the exchange. For a time, only holders willing to buy and sell paid attention to the development, but soon larger investors joined them.

How is Huobi Token created?

HT cryptocurrency cannot be mined through mining. Initially, the creators presented the development on the Ethereum blockchain and formed an emission of 500 million coins. 60% of this number fell into the distribution, 40% was invested in a fund for further development.

At the moment, there are about 50 million coins in use, which can only be obtained through a purchase on the exchange. More than half of all transactions are carried out on Huobi Global, which offers the most pairs, but the rest of the coins are distributed among major platforms from Asia: CHAOEX, DradonEX, BKEX.

The company has provided several options for storing coins:

saving in an account on the Huobi platform;
in a wallet that supports the ERC-20 cryptocurrency standard;
in the official wallet from the company, which is made for both iOS and Android.
Storage on the exchange itself is not reliable enough, because all the processes with state regulation of the digital finance sector have not yet been completed, and therefore it is likely that at one point all accounts will be frozen. The use of third-party wallets makes it impossible to participate in the referral program. It is in the official utilities that the benefit lies.

Of course, experts recommend using the official HuobiWallet holder as it provides the greatest security. It is a multi-currency wallet that allows transactions with over 1000 digital currency assets. It makes it possible not only to save the currency, but also to monitor its condition, since the system displays market dynamics on the screen.

All this suggests that the Huobi cryptocurrency wallet is the best option, which is suitable not only for trading, but also for the depositors themselves.

Is Huobi Token Infinite?

Since the cryptocurrency is strictly limited to a certain emission, we should talk about the impossibility of endless use of coins. But then two questions are relevant: how long can the use of the existing number be, given that the turnover is possible only within the system and does not go beyond the network to pay for any services, and what is the likelihood that the creators will not decide to launch some more coins in everyday life.

Strengths of Huobi Token

Leon Lee, team leader, set the following goals for the project:

increase the loyalty of registered users;
attract the attention of new members;
improve the situation and increase the platforms rating.
Speaking about a special loyalty program, it is worth saying what the network members get:

reduced commissions: a small amount of commission is provided for users for transactions that are used within the system;
Convenient mechanisms for trading cryptocurrency: more than 30 HT pairs with other currencies and fiat are posted on the exchange, which makes it the most convenient and used altcoin on the platform;
investment safety: a convenient system has been created on the platform for the redemption of 20% of coins from the market with further transfer to the Investor Protection Fund, so all saved savings can be used to pay out to network members in case of unexpected hacks, attacks;
loyalty system: currency owners receive a privilege in the form of the ability to be the first to buy new coins from the exchange and even receive them without investment;
the ability to vote: holders can vote to include new altcoins in the listing, thereby deciding the fate of the coins.


Huobi Token in TOP currencies

The main purpose of the token is to improve the situation of the parent exchange. The creators did not plan to create a currency with high volatility, extraordinary algorithms or increased prospects. Their task was to form a stable own asset, which will be a convenient tool on the site itself. This principle initially focuses not on high ratings and demand, but on supporting existing plans.

According to experts, such sharp fluctuations in the exchange rate should not be expected in the near future: the price is unlikely to exceed $ 5 for the entire 2019, and by 2020 it is predicted to rise to $ 6. This suggests that Huobi Token will be an excellent option for investments for a short period, but interest in the project is fueled by the companys strategy to buy back 20% of tokens on a quarterly basis, thereby increasing the value of the remaining ones due to the growth of their value. But such periods can also be used for your own benefit.

Long-term deposits are reasonable only for network participants who have VIP status, because they can use all the assets received to pay commission amounts and to obtain other privileges within the system. HT differs significantly from other digital assets in that its development is not influenced by listing on some third-party exchanges. The main growth stimulator is the development of the exchange itself. At the moment, the site has established itself as a reliable and promising mechanism, which means that more and more users prefer Huobi Global and wish to become members of the network. The situation is the same in the investor world.