Huobi is considered one of the world’s top three digital asset exchanges. It works with its own token, popularly known as Huobi Token. It is acceptable for trade on exchanges including Bibox, Huobi Global, HitBTC, and more. To give you a better grasp of the subject, the following guide will provide a clear analysis about what Huobi Token is, the history behind it, how it works, common pros and cons, and what to consider before purchase.
Table Of Contents
- What is Huobi Token (HT)?
- Brief History
- How Do They Work?
- Benefits and Shortcomings
- Almost Ready to Buy?
- Conclusion
What is Huobi Token (HT)?
Huobi Token is a decentralized digital asset under Ethereum (with ERC 20) designed by the Huobi Group. Based on the token system, the asset is managed and issued through blockchain. It is not classified as an Initial Coin Offering (ICO) since its operation involves a loyalty program mainly designed to lessen fees spent when trading using other cryptocurrencies. The token operates on the mostly the same notion as Binance—which offers up to 50 percent off trading fees.
Huobi Token supply is permanently fixed at 500 million. This amount is divided into three parts to serve different purposes, namely:
- 300M tokens (some 60 percent): allocated to provide profit to users who stand to gain by purchasing Huobi products.
- 100M tokens (some 20 percent): cater for team incentives for a fixed period of 4 years.
- 100M tokens (some 20 percent): to reward loyal Huobi users with gifts and incentives. These tokens will also be used to sponsor Huobi’s operations.
Huobi Tokens: Brief History
The first Huobi Token was launched in China in early 2018. Its creator mainly targeted users from the Southeast Asian markets (which explains why Huobi Token’s presence there is the greatest compared to other parts of the world).
The token follows other common loyalty-building tokens such as Binance Coin (BNB). The advent of BNB was so successful that it quickly became a favorite across trading platforms and was ranked the world’s top token. However, the more users wanted it, the higher its price rose. This inspired other exchanges who saw an opportunity to offer an alternative token which would not only make them a fortune but also hopefully achieve the same—or even superior—success. The Huobi Group was one of such enthusiasts. All that led to the birth of Huobi tokens on January 22, 2018.
Then, the Group supplied 300 million tokens in a span of 15 days to its pro users, at special discounted packages. Every day the Group would release a batch of tokens and distribute them on a first-come-first-served basis. In this regard, Huobi decided to not classify the token as an Initial Coin Offering.
The Group also decided to use different token distribution strategies, offer additional benefits, and target specific markets striving to outshine Binance coins in the process. Though their efforts turned fruitful and their tokens considered successful, Binance Coins are still considered the best transaction tokens.
Reportedly, Huobi Tokens were launched at an opportune time to curb tightening regulations set by the Chinese government against cryptocurrency trading. In fact, newly-adopted laws reduced Huobi’s trading volume by about 95 percent in 2017. To recover customer engagement, the Group came up with the Huobi Token idea. Looking back, the Huobi Group must now be proud of that tipping-point decision as it helped them recover their losses and also demonstrated their capability to recover from tricky business situations.
Now, the token has gained so much traction worldwide. To find out how much the tokens are currently worth, their market rank and gap, 24h volume, circulating supply, and total supply among other relevant data, click here.
How Do They Work?
To acquire Huobi tokens you need to buy “Point Cards” on Huobi. Another way to acquire them is to become a member of the Huobi Knights Recruitment Program—usually, those tokens are offered as rewards for both new users and existing members. The tokens can then be traded against Bitcoin, Ethereum and USDT.
Their main hook is numerous discounts users get to enjoy while buying and selling on the Huobi exchange. To enjoy such discounts, one is allowed to purchase the VIP membership plan on the exchange via VIP tickets available at different levels:
- VIP 1 (120 tokens/month): 10-percent trading discounts.
- VIP 2 (600 tokens/month): 20-percent trading discounts.
- VIP 3 (1,200 tokens/month): 30-percent trading discounts.
- VIP 4 (6,000 tokens/month): 40-percent trading discounts.
- VIP 5 (12,000 tokens/month): 50-percent trading discounts.
As you can see, the higher your VIP membership package, the heavier discounts you get. Apart from that, owning Huobi Tokens enables you to access exclusive events—e.g. you are among the first to receive airdrops of the most recently listed tokens on the exchange. Additionally, you are able to cast your vote and support coins and tokens you would like to see listed on the Huobi Autonomous Digital Asset Exchange (HADAX).
Not to forget, holding Huobi tokens makes you eligible to occasionally receive airdropped Huobi Pool Tokens. Every day, the Huobi Group analyses the Huobi Token Blockchain and then supplies users with Huobi Tokens pro rata. As long as your tokens are stored in a Huobi Exchange Wallet, you are guaranteed to wake up every day and get a fresh supply of the Huobi Pool Tokens from the airdrop.
Huobi Token (HT) Benefits and Shortcomings
Below are common advantages and disadvantages of using the token.
Pros
- Timely and early access to important Huobi cryptocurrency events.
- Bonuses and rewards from the Huobi Group’s buyback programs and from trading with other cryptocurrencies listed on the exchange.
- Vote for your favorite cryptocurrencies and make other crucial exchange decisions.
- Depending on the VIP plan you choose, the tokens enable you to enjoy exclusive discounts while trading with other cryptocurrencies.
- The Huobi Exchange allows you to trade over 100 different pairs.
- Earn lucrative dividends from Huobi.
- Liquidity protection.
- Buy and sell tokens on the secure exchange.
- Stellar and friendly customer care support from the Huobi Group, easily available via phone, email, social media, or ticket system.
Cons
Despite the token’s benefits, there are various reasons why it’s still not ranked top as the world’s best:
- Focus on Asian markets. The Huobi Group targets the Asian market—most specifically China—accepting direct Yuan deposits and offering trading against the locally-acceptable currency. Other users from other parts of the world may feel left out.
- Backed up by USDT. USDT is linked to numerous risks. Industry experts doubt the availability of assets said to back it up.
- Questionable security. In times past there were some reports of the exchange getting hacked, with one incident leading to a loss of over 12,000 BTC.
- High charges on trading some coins. Other exchanges offer by far affordable withdrawal charges placed on some coins such as 0.001 BTC and 20 USDT.
Almost Ready to Buy?
Nice idea then! These tokens can impressively facilitate trading. However, in order to reap maximum benefits, you need to know when to strike while the nail is still hot.
Similar to other cryptocurrencies, there is a plethora of factors that come into play when deciding whether to buy these tokens or not. Before purchasing Huobi Tokens, you need to consider three main factors:
- The Huobi Platform. Tokens are only available for sale over this platform hence you need to have considerable knowledge of how the platform works and factors likely to affect its trading volume.
- Supply and distribution pattern. It is important to find out the amount of Huobi Tokens circulating in the market as of the time of purchase. You should also analyze how much is allocated to those who purchase point cards and additional ways you can use to earn more tokens. Both supply-and-distribution patterns are usually subject to a 4-year vesting schedule.
- Buyback. Huobi regularly buys back tokens and stores them in the Huobi User Protection Fund. As explained by the company, such a technique makes it easier to protect user interests in case of abrupt losses.
If you feel sure you want to buy, below is a step-by-step how-to:
- Sign up on Huobi. This step will require you to fill in your personal details including a valid email address. You will also be required to enter and confirm your password. Once you are done you can click Send.
- Verify your email address. Log in to the email account you’ve indicated above, to find a message with a code you should fill in the required slot on the Huobi Pro website.
- Start using the exchange to deposit and withdraw. To top up the balance or withdraw funds, go to corresponding website pages.
Generally using the Huobi Pro website to buy tokens is considered a walk in the park. You only need to click on relevant tabs and follow the given instructions.
Conclusion
After reviewing all the useful details that determine if a cryptocurrency is a worthy investment, Huobi Tokens pass the test. Its solid trading volume, high liquidity, safe transactions, and great customer support from its creators is quite impressive. No wonder their current ranking is within the world’s top three! Nevertheless, what you are looking for and your specific needs are what will determine whether investing in these tokens will prove worthwhile. Use the above data to inform your decision.