Review on Huobi Token by Celil Ozturk

Name: Huobi Token
Item: Huobi Token
Rating: 4

August 27, 2018

Huobi, one of the leading cryptocurrency exchange by volume, has created its…

Huobi, one of the leading cryptocurrency exchange by volume, has created its own native token, Huobi Token (HT), in the same fashion as other cryptocurrency exchanges, such as Binance and Kucoin. The value of the token is highly tied to the performance of the Huobi.Pro exchange and its affiliates, but more extensively to the coin’s supply and demand drivers within the Huobi ecosystem. With Binance Coin (BNB) being valued at more than $1.5 billion and KuCoin Shares at $300 million, can Huobi Token (currently valued at $132 million) see similar growth? We believe so. In this review, we present HT’s use cases, and conclude with a comparative analysis of Huobi Token against Binance Coin, KuCoin Shares, COSS Token and Bibox Token (if you’re already aware of the benefits Huobi Token provide, we highly recommend you to stay with us, and to jump to the comparative analysis section)
Since its establishment in 2013, Huobi's accumulative turnover has exceeded $1 trillion and once became the world's largest digital asset exchange with a global share of 50%. Financed by ZhenFund and Sequoia Capital, Huobi Group has invested in more than ten upstream and downstream enterprises. It has established compliance service teams in Singapore, US, Japan, South Korea, Hong Kong, Thailand, Australia with its secure and credible trading and asset management services to millions of users in 130+ countries.
Huobi Group is a leading global digital asset financial service provider. Upholding the idea of “empower financial services and liberate global wealth” as our mission and “putting users first” as our concept, Huobi Group is committed to offering secure, professional, credible, and quality services.
Each season, Huobi Global buybacks certain portion of HTs on the open market. All the bought-back HTs will be held in the Huobi User Protection Fund. The bought-back HTs will beused to protect users’ interested and compensate for their losses in cases of emergency.
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Pros

The two use cases above are the main advantages of holding Huobi Token, and are the key drivers of its value. Another advantage of holding HT is that it is likely to see price appreciation. The price of any asset is ruled by supply and demand factors. Concerning the demand for HT tokens, the main driver will be 1. the number of institutional investors joining the platform, 2. the number of users speculating on a rise of the token’s value, and 3. interest from the public concerning the rewards provided by projects during voting rounds, as it can be seen as a guaranteed return with limited risk.

Cons

In regards to the project airdrop rewards when coins are listed, as the cryptocurrency market cap increases, the competition to be listed will become more fierce, and therefore, to win the round, projects will have to offer more attractive rewards to voters – incentivising more people to vote for their projects, and buying HT as a result.