Its Potential and The Future

Launched in 2018, Huobi is a native token of the cryptocurrency exchange, Huobi Global. It’s an ERC-20-compliant asset that runs on the Ethereum blockchain. The token became popular soon after its launch due to many factors. One of them was that it was competing with the native token of Binance. 

The others include some unique and common attributes that will be discussed in detail further. Like any other exchange, Huobi also launched the token to boost its marketing and growth. So let’s explore what this token offers and how it benefits investors.

Huobi: In a Nutshell

Leon Li, a former computer engineer at Oracle, co-founded the exchange with Herbert Rafael Sim and Jun Du. Li was fascinated by the power of Bitcoin and wanted to make blockchain more accessible. Currently, Huobi operates across multiple entities including Quick Wallet, Huobi Global, Huobi China, and Huobi US. 

It included on-platform governance, rewards, and special event access. Upon its launch, the token became popular and its trading volume touched the level of billions. The asset aims to deliver a better experience to crypto users in multiple ways. It offers access to new cryptos, discounts on trading fees, and voting rights as well. Moreover, the price of the token responds to the exchange’s performance. If it does well, the users see the rise in their holding’s value.

The Huobi ecosystem offers services like decentralized borrowing and lending as well. Its network is quite similar to the Binance smart chain in terms of functionality. However, the Huobi manages to offer added advantages and transaction methods to its users. Deploying the coin-burning and buyback strategy generates 20% of revenues internally. The token maintains its value by removing the excess from circulation.

Salient Highlights of Huobi Token

• It was specifically created to compete with Binance’s native BNB token. 
• It becomes a uniform method of payment on all platforms across the Huobi ecosystem.
• It emerges as a perfect fit for OTC trading and corporate payments. 
• It gained prominence upon its launch and reached an all-time high level in 2021.
• The token has maintained a credible ranking since its launch on major platforms.

Security Aspects of Huobi Token

To make the security robust, the Huobi ecosystem utilizes anti-DDoS and a distributed architecture. Strengthening it further, the team stores 98% of tokens in a multisign cold wallet. In addition, it has an in-built risk control system known as “Don’t Be Evil.” This specific mechanism ensures enhanced safety of assets and accounts. 

That’s not all, it even has an asset protection system called the Security Reservation Mechanism. To safeguard its investors from uncertainties, Huobi launched an Investor Protection Fund. Implementing all these features, Huobi does gain the trust of crypto users on the security front.

Tokenomics and the Future

Huobi didn’t follow the standard ICO structure to distribute its tokens. Instead, it followed the Initial Exchange Offering (IEO) model with a specific roadmap. It started by directly routing the tokens to VIP users.  Furthermore, regular traders could only buy an inclusive package that contained tokens and some services. With a total supply of 500 Million, it allocated 300 Million (60%) tokens to users. The team retained the remaining 200 Million (40%) tokens in its reserve. Besides that, the project delivers impressive rewards and a loyalty program. Many believe that the project has a bright future ahead. 

Disclaimer

This article is only for information purposes and does not promote any type of investment, it is strictly suggested to do your research before investing or to consult with investment professionals.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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