Platform tokens offered by the likes of Huobi Global, Binance and OKEx have proliferated in recent years, drawing users who are attracted to the host of benefits they offer. These include discounted trading fees, referral rewards, exclusive access to new projects, and even exclusive voting rights.
In a competitive virtual assets industry, platform tokens are nearly converging in terms of their benefits to capture more market share. Discounted trading fees have become a standard feature, with Binance’s BNB and OKEx’s OKB offering up to 25% and 40% off trading fees, respectively. FTX is among the exchanges that offer higher referral fees for their platform tokens, while holders of BNB and OKB can enjoy priority access to new projects.
Faced with a plethora of offerings with so many features, users can be forgiven for finding it challenging to evaluate and choose the right platform token. This article will explain why Huobi Global’s Huobi Token (HT) is a worthy contender by highlighting the key benefits it offers.
First up, HT is an ERC-20 token which operates on the Ethereum blockchain. While HT unlocks the most benefits on Huobi’s platform, the token can be traded on other exchanges and sent to other hardware wallets as well. HT’s value correlates closely with the popularity of Huobi Global’s platform, which means holders can participate in the exchange’s growth. It’s worth noting that as one of the most established virtual asset exchanges founded in 2013, Huobi Global consistently ranks among the top 10 by trading volume.
Read on to learn more about HT’s three key features which warrant a closer look.
- Deflation mechanism
By design, Huobi Tokens get taken out of circulation every month through a mechanism known as burning, which takes place when Huobi Global repurchases and destroys the token. Doing so helps to support the price of the token in the market and can increase its value over time. Another intended outcome of these burns is to keep inflation low. Token burning is one of the key mechanisms that investors look at to determine if a project has the ability to counter inflation. With a continually shrinking supply of tokens in the market, this means token holders can enjoy better yields.
Huobi Global allocates 20% of its revenues each month to buy back and destroy HT. More specifically, 15% goes towards burning HT from circulating supply, and the remaining 5% is spent to burn HT team incentive rewards. In September 2022, Huobi Global burned 411,000 HT worth approximately 1,863 million USDT.
- Exchange platform perks
To offer HT holders more stable and higher returns, Huobi Earn has increased the APY of its HT flexible deposit product by more than 12 times, from 0.2% to 2.5%. In addition, Huobi Earn has added a fixed deposit product for HT. The APY for a 30-day deposit of HT now stands at 4.5%, much higher than that of other platform tokens such as BNB and OKB.
HT holders can also stake their HT to Huobi’s token listing program such as PrimePool and Primelist to participate in the ecosystems of some of the most promising projects. All users need to do is hold or lock their tokens for a certain amount of time, after which they are rewarded with free airdrops of the new token. The rewards are distributed based on the users’ token allocations and the time staked. These new project allocations could appreciate in value and enable any user to broaden their income sources.
HT holders stand to enjoy higher-tier membership levels on Huobi Prime, as their HT holdings will be entitled to a 1.5x multiplier for the purpose of membership level qualification. Members who use HT to pay for their transaction fees can enjoy an additional 12% discount, which could bring fees to as low as 0.0111% for spot trading. They can also enjoy rebates of up to 0.01% of the total transaction amount for derivatives trading.
Lastly, HT also unlocks priority access to events organized by Huobi Global, such as Bitcoin Pizza Day which commemorates the world’s first physical Bitcoin transaction. At this year’s event which took place May 19-29, HT holders enjoyed exclusive rewards at this event and a chance to win from a prize pool of 50 Bitcoins and NFT rewards.
More support for HT
Following Huobi Global’s recent acquisition by About Capital, HT’s prospects have never looked brighter after His Excellency Justin Sun – newly appointed to Huobi’s global advisory board – voiced his support for HT to strengthen its place in the virtual assets industry. H.E. Sun is also the founder of Tron and Ambassador Extraordinary and Plenipotentiary, Permanent Representative of Grenada to the WTO.
Speaking to Bloomberg Television in an October 13 interview, H.E. Sun said that he owns “tens of millions” of HT as “one of the biggest holders” in the world, adding that he would try and boost the token. The next day, H.E. Sun tweeted that an ascendant HT will put more wind in the sails of Huobi Global and the TRON ecosystem. Unsurprisingly, HT surged by up to 70% in the 30-day period leading to October 18 as the global blockchain community digested the news.
A week after his interview with Bloomberg Television, H.E. Sun followed up with another pitch for HT when he said on Twitter that he believes HT is undervalued and thus represents a sound investment opportunity. He explained that this is because while HT and BNB have similar issuance rules and circulation, HT costs just a fraction of what BNB now fetches – in spite of Huobi Global’s large user base, high trading volumes and strong capitalization.
Given it is still early days in Huobi Global’s new chapter, users can expect more scope for HT’s development along with more potential upside from the additional business focus. The token looks set to be one of the most-watched developments at Huobi Global post-acquisition, as the next phase of its growth kicks off under its new management.