The cryptocurrency market began in 2009 with Bitcoin, but over the last ten years, thousands more have been introduced. This evolution of digital assets has resulted from different motives and reasons. Today, you will find that cryptocurrency exchanges are not just offering trading and investment services, but are also launching their own tokens for the users. These native tokens can be used for a variety of purposes and they can vary from platform to platform. However, the primary purpose of these tokens is to make the value of the exchange tradeable in the market. Huobi Token is one such exchange and it is undoubtedly worth considering.
One of the leading cryptocurrency exchanges in the market is Huobi Global, which offers hundreds of digital assets to its clients. More than 280 cryptocurrencies are supported on the platform and it offers efficient services to ensure a smooth and comfortable trading experience for its users. The company decided to bring its Huobi Token for making the value of the exchange tradeable and also for a better way to serve its customers and reward them in the form of reduced transaction costs.
The Huobi Token (HT) was designed by the team behind the Huobi Global exchange and it is a decentralized ERC-20 token that’s based on the Ethereum network. It was introduced in 2018 and the Huobi Token can be stored in its official wallet that’s provided by the exchange. This wallet is capable of accommodating a diverse number of cryptocurrencies, along with other ERC-20 based tokens. Interestingly, you don’t have to use the official Huobi wallet for storing your Huobi tokens.
You can use any wallet for storing the tokens, as long as it supports ERC-20 tokens. But, you should bear in mind that using third-party wallets comes with certain restrictions. Therefore, it is best to store the tokens on the platform itself. This can provide users with optimum benefits that come with holding and using the token.
Immediately after the Huobi Token was introduced in January 2018, its distribution was initiated and it went on for about a month. A massive number of trades were conducted using the token and the total market supply was about 500 million. 60% of the total supply of Huobi tokens, which was around 300 million, was allocated to members of the exchange, particularly those who had purchased packages. The remaining 200 million of the tokens were in the company’s custody. 100 million of these tokens were reserved by the company for rewarding the users.
The remaining 100 million Huobi tokens were to be used as a reward for the team members of the platform. After a couple of progressive years, the token reached an impressive price of $8.38 in mid-2021. Users can enjoy a number of benefits due to the Huobi token. The token is used by the exchange for facilitating a protection program for its investors. If users fall victim to manipulative schemes or suffer from financial losses, tokens are apportioned to the investor compensation fund for insuring people against these circumstances and compensating them.
Likewise, Huobi tokens also come with voting rights, which means users have the power to impact the changes that occur on the platform and can also influence the decisions of the exchange, including choosing the asset listing. Moreover, users of the exchange who have VIP status can also get a series of discounts when they are using the Huobi Token. In addition, the token can also be used for buying different levels of VIP status. Hence, this provides investors and traders the opportunity to save their funds by taking advantage of the commission they can get on the use of the exchange’s own token.
You should also note that the Huobi token can also be exchanged for another cryptocurrency easily, as the process is not complicated at all. The Huobi Global exchange has been enjoying significant success since it was launched and now it appears its token is also following the same path.