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Huobi Token (HT) is the native cryptocurrency of the major crypto exchange Huobi Global. It is based on Ethereum’s network, meaning that it is an ERC-20 token. As a non-stablecoin, its price is subjected to change depending on the market, but also on the exchange’s reputation, new developments connected to the platform, the token’s use cases, and more.
Huobi Token was launched in January 2018, not too long after Binance launched its own Binance Coin (BNB). In fact, HT became something of a rival to BNB. Within the exchange’s ecosystem, HT has been helping Huobi Global build a flexible marketing strategy in order to attract new users and help the platform grow further.
What Problems Does Huobi Token (HT) Solve?
Huobi Token has no real use cases outside of the Huobi Global exchange. Of course, it can be used for investing and trading, but it was not created with the goal of solving some specific problems in the real world.
Instead, it is used for improving user experience within the exchange in several ways, such as:
Investor protection program
Huobi Global regularly engages in HT buybacks, which has several purposes. For example, it brings the coins back to Huobi Global’s wallet and removes them from circulation. In doing so, Huobi is also helping increase the token’s scarcity, which can reflect positively on its price.
More than that, the tokens that the exchange buys are sent to an investor protection fund, whose purpose is to compensate for any financial losses. In other words, the exchange has prepared a fund from which it will draw funds to cover any losses that traders and investors experience due to bad actors, system failure, and alike.
Promotion of new tokens
Huobi Token also helps in another way, which includes promotional airdrops. Essentially, whenever the exchange lists new crypto assets onto its platform, Huobi Token holders receive rewards in the form of HT. The rewards come for two reasons — to reward the holders, and to promote the new coin that was listed onto the platform. According to the exchange, it is also possible for holders to receive a wallet bonus.
Benefits of Huobi Token (HT)
Huobi Token comes with a number of benefits that make it quite a useful asset within Huobi Global’s ecosystem. Investors can not only profit from the token, but also get additional benefits such as:
Reduced transaction fees
One of the biggest benefits that Huobi Token holders get is the discount on transaction fees. In fact, the exchange offers an entire series of discounts for clients that hold VIP status. Thanks to this benefit, investors, and traders can save up quite a bit of money of funds on commissions. This is not a unique feature, of course, and most exchanges use their native cryptos in a similar way. However, only Huobi Token grants such discounts on Huobi Global exchange, so all those who wish to trade on this exchange and receive discounts would do well to obtain some HT beforehand.
Means of exchange
Another advantage that users get from holding HT on Huobi Global is a convenience when it comes to converting coins. The platform has HT paired against pretty much all other cryptos that are listed on its service. Therefore, it is very easy and convenient to exchange Huobi Token for other cryptocurrencies. In other words, you do not have to buy stablecoins or Bitcoin in order to purchase a less popular cryptocurrency, as HT grants access to most, if not all of them.
Lastly, it is also worth noting that HT allows token holders to participate in the project’s governance. This is something that became quite big thanks to DeFi and DAOs, but exchanges like Huobi have been providing this option for a long time. Basically, if you own any amount of HT, you are eligible to vote on various proposals regarding the project’s future and development. This ensures true decentralization and democracy within the ecosystem, and the more tokens you have in your possession, the more weight your vote carries with it.
How Does Huobi Token (HT) Work?
Huobi Token’s main mission is to provide the Huobi Exchange’s users with the best possible experience, and with new ways to get discounts on trading fees, access new coins, help make decisions that would guide the project into the future, and more. It also helps secure the exchange’s users, so they do not end up financially ruined in case bad actors happen to steal their funds.
Of course, there is also the fact that this is an actual cryptocurrency, so there can be financial gain, as well. Simply put, if Huobi continues to attract users and move up in popularity, so will its tokens, which will benefit all those who hold it.
Huobi Token is a crucial part of the Huobi Eco Chain, as well, which is a chain that hosts DeFi apps. This is essentially Huobi’s version of BSC, established specifically to offer access to new crypto trends that are based on smart contracts.
Apart from that, the token’s purpose is to secure the network and provide benefits and additional transaction methods for the exchange’s users. HT also has similar tokenomics to BNB’s own buybacks and coin-burning strategy. Huobi uses 20% of the revenue generated from smart contracts to buy back HT and remove it from circulation which, as mentioned, increases the tokens value.
How to Buy Huobi Token (HT)
Huobi Token (HT) is available on the following exchanges:
Huobi Global – Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion. It should be noted that Huobi Global currently does not accept USA or Canadian residents.
KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. It is often the first to offer buying opportunities for new tokens. USA Residents are Prohibited.
Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK. USA & Canada residents are prohibited.
Huobi Token (HT) — Final Thoughts
Huobi Token is a useful cryptocurrency within the Huobi Global exchange’s ecosystem, and outside of it, it can be used for benefitting from trading and investing. However, its true use cases and benefits lie within the exchange, so it will likely be the most useful to those who are interested in using Huobi Global.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.
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