Updated: Dec 20, 2019
The Huobi token or the HT is an ERC-20 token, which allows all participating users to receive an instant discount for any fees paid on the Huobi exchange. Formerly known as HBUS in the United States, this cryptocurrency was launched in direct competition to other major crypto trading services in the U.S., such as Robinhood and Coinbase. Huobi is currently ranked as the fourth largest crypto exchange, based on adjusted trade volume as per CoinMarketCap.
This quick guide will highlight the purpose for which Huobi was designed, the team behind it, how it works and uses and applications.
What is Huobi Token Designed For?
Huobi token has followed in the footsteps of the ultra-successful Binance coin (BNB). The cryptocurrency was created to be used as an alternative to trading fees, on the Huobi exchange. The creators encouraged participants to employ HT towards their trading fees by offering great rewards and discounts.
For 15 days, new batches of HT were made available on a first-come-first-served basis, which was labeled by Huobi as not being an ‘ICO’. HT was launched as part of an overall strategy employed by Huobi, to recover its user base after China’s tightening of cryptocurrency regulations in 2017, severely restricted trading.
Huobi founder Li revealed that changes in the Chinese rule had decimated Huobi’s trading volume by 95%, in 2 months, and that HT was viewed as an opportunity to boost customer engagement.
Who Is the Team Behind Huobi Token?
Huobi’s story started in 2013, with Leon Li, a former Oracle engineer. The same year after purchasing the Huobi domain, Li made BTC trading live and garnered angel investments from notable places, like the legendary Sequoia Capital group.
However, it was only later in January 2018, when Huobi decided to launch the Huobi Token as the platform’s native currency. At the time, Huobi was the world’s third-largest crypto-exchange and the creators designed HT, to be at par with a similar level of success.
How Does Huobi Token Work?
Huobi tokens work like any other cryptocurrency used to pay the trading fees. You can use it on any Huobi domain, such as uobi.com, hbus.com, huobi.pro, or hbg.com. There is a wide variety of trading pairs on all Huobi exchange, which means you are bound to want something.
While Huobi is super competitive in terms of trading, the trading fees, especially in the case of a ‘whale’ trader can be significant. HT allows these trading fees to be slashed almost in half, on the same lines as KuCoin, Binance, and Bibox. HT also gives users the right to participate in IEOs and engage in governance decisions regarding the platform.
It is easy to get a fee reduction on the platform. All you need to do is hold HT in your wallet, and select the option for using it to pay for trading fees in the user configuration panel. Users can also sign up for VIP memberships that can slash these fees up to 65%.
Each quarter, Huobi token is purchased by Huobi Pro in the open market at a value that equates to 20% of its profits. The HT, so purchased, are then allocated to Huobi Investor Protection Fund (HIPF) in a certain proportion.
What are Current and Future Applications of Huobi Token?
The primary use for Huobi Tokens is the same as Binance (BNB) – to be utilized for the discount on trading fees, which in some cases can be upwards of 50%. However, it can also be used with various merchants and vendors worldwide.
In a recent August release, Huobi announced to have partnered with FomoHunt, an eCommerce and crypto news platform. This is the first time that HT can be used for eCommerce. This also gives members of the Huobi community access to Huobi-branded merchandise. Apart from purchasing merchandise goods at FomoHunt, Huobi can be used for purchasing apparel, art, event tickets and even hardware.
Huobi can also be used for trading other cryptocurrencies, such as ETH, USDT, and BTC on Huobo Pro, Huobi Global, Bibox, and HADAX, among others.
Huobi has made it a priority to develop HT since its original inception in 2018. It has systematically introduced HT as the main token of exchange in both Huobi Prime (an innovative premium coin launch platform) and Huobi FastTrack (recent coin listing program). Huobi also implemented a series of trading fee discounts based on a tier-system that takes user holdings into account.
As an exchange, Huobi has always been promising and immensely popular, which can in part, be attributed to instant customer service, a highly secure exchange with numerous options for protecting user accounts and a fast and smooth user interface. This makes the future of HT look very promising.