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Huobi Burns 14 Million Huobi Tokens Amid Quarterly Revenue Gains

Longstanding Singapore-based cryptocurrency exchange Huobi recently held their quarterly token burning event, which led to the removal of 14 million HT or Huobi Tokens from their total global supply.

Out of their total market supply of 310,3118,300 HT, Huobi removed 14,011,700 as stated by company representatives. This move is 116% bigger than last quarter’s total tokens burned.

As far as reason goes, the exchange chalked their decision up to favorable market conditions and revenue gains.

It’s usual for Huobi to burn some of their tokens in order to stabilize the HT’s value in the market. It also prompts users to hold tokens in the face of inflation, effectively creating an incentive for their customers. Since the introduction of Huobi Token in the early quarter of 2018, the exchange has allocated 20% of its quarterly profit on acquiring outstanding tokens.

A Look Into Huobi’s Quarterly Burning

Huobi doesn’t have a fixed amount of token to be burned per quarter. Since it is based on their 3-month revenue, the amount would fluctuate, which shows how they are able to come up with a 116% increase in total HT burned.

The total revenue the company attributes to their token removal is driven by how strong they perform by the end of the quarter. Based on the record, they managed to get a 232% rise from quarter-over-quarter gains.

There had been eight burning events since April 15, which removed 21,356,800 tokens from their supply. This is more than three times the tokens they repurchased in quarter 1, which amounted to 6,474,800 HT.

The token repurchased by Huobi goes into an accessible Ethereum address. This acts as the company’s reserve and is called the Investor Protection Fund.

According to Huobi CEO and Founder Leon Li, two markers determine the buyback size for every quarter. Firstly, the rapidly growing digital assets market. Secondly, Huobi’s upward popularity in terms of its services and products.

Specifically, the revenue gains of the exchange can be credited to upsurge on their Prime membership and as well as fees from their FastTrack program. The trading volume of Huobi’s DM platform is also astounding at $504 billion.

Huobi’s Plans For The Future

Huobi expects to have further innovations and improvements on their products and service for the rest of the year. Li highlights developments such as high-frequency API algorithm and the launch of their decentralized public blockchain, the Huobi Finance Chain.

According to representatives, this is the last HT burning event that uses their traditional method of buying back tokens.

Huobi is looking to directly buy HT using the revenue from their HT Tiered Fee-Deduction plan. They will source 2/3 of burnable tokens from the market, and 1/3 of it from the team’s holdings.

Also, the company is carefully considering a change of burning schedule from quarterly to daily or monthly. To date, no official statement has been disclosed regarding such decisions, as Li reiterated that further talks with the community will happen in the coming months.

Huobi As Of Today

The current total token supply of Huobi’s ERC-20 Ethereum amounts to 478,643,200. Users holding native tokens have access to Huobi Prime’s premium coins It is also used by OTC merchants as a security deposit on the exchange. Native tokens also allow them to vote.

Huobi is one of the earliest established crypto exchange company. It was founded in 2013 and finds its roots in China. Today, Huobi has ten different businesses. They serve and operate in 130+ countries all over the world.

Their accumulated $1-trillion turnover makes Huobi a significant player in the industry. As their revenue continues to flourish, so does the public relay their trust and loyalty to the brand.