Huobi Unveils Its Own Token Without An ICO
Huobi Global has announced the launch of its own token which will be based on the Ethereum platform and even more surprising is the announcement that the token will not be launched through an ICO.
The new token which is called the Huobi Token (HT) was scheduled to launch on January 23rd and it will be operated on the Ethereum blockchain via the ethereum ERC-20 standard. Huobi Global which was one of the major cryptocurrency exchanges in China before they were banned announced that there will be roughly 500 million tokens available. The company plans to distribute 60 percent of the tokens to users over the next 15 days. The remaining 40 percent of the tokens will be retained for use on the Huobi platform.
The 300 million tokens that will be made available to users will be sold at discounted prices to users who buy service fee packages through Huobi Pro. Buyers will use a cryptocurrency token called tether (USDT) which is tied to the U.S dollar. This means that the HT token will not be rolled out through an ICO. Users looking to purchase HT can only do so by buying Point Card' on Huobi Pro. The company is yet to release more details about the service fee packages although it did reveal that each buyer will have a minimum order of 100 HT.
The announcement highlights Huobi’s attempt to make a comeback after its business was negatively affected by China’s decision to wage war on cryptocurrency exchanges. The company’s founder, Leon Li, stated that Huobi Group has adopted an over-the-counter trading strategy ever since things went wrong in China.
In a recent interview Leon Li revealed that: We closed the trading book service on Sept. 15 and opened the crypto-to-crypto trading on Nov. 1 in 2017. The volume on Nov. 1 was about four to five percent of that on Sept. 15. The impact was really significant.”
The recent announcement also revealed that Buobi Global plans to include a buyback program through which the company will devote 20 percent of its profits to repurchase HT from the market and it will do this on a quarterly basis. The firm will also collect fees with ease in advance thanks to the structured utilities on its network and this will also allow it to maintain its customer loyalty program over the long-term. Li revealed that his firm will be able to collect upfront service fees while enhancing user retention.