One of the major cryptocurrency exchanges in China, Huobi, has announced that it will launch and issue its own cryptocurrency. The currency, named as the Huobi Token (HT), is based on the Ethereum ERC – 20 standard.
The issuance of the currency has commenced from 23rd of January 2018 and has a total supply of 500 million tokens. The announcement says that around 300 million HT, which is 60% of the total supply, would be issued to users over a course of 15 days. The rest 40% or 200 million HT would be retained by the creators for team incentives, user rewards and platform operation.
The company claimed that their token offering is not an ICO (Initial Coin Offering). Instead, the currency would be provided to those users who purchase a service package at a discount on the Huobi Pro platform using Tether (USDT), a cryptocurrency that is pegged to the value of the US Dollar. One can also use other major currency to purchase those services including Bitcoin, Litecoin, Bitcoin Cash and Ethereum.
The company has revealed that there would be limits on the maximum number of HT’s a user can purchase. It has also revealed that the minimum order of HT’s should be 100 tokens in order to go through.
The latest move by Huobi is significant as it shows the company is trying to recover lost ground since the Chinese government’s decision on cryptocurrency has damaged its business badly. The company, since the clampdown, has shifted focus from China to overseas markets and is following an over-the counter trading model.
The company believes that through this move they would be able to gather service fees at the start and would increase customer engagement levels. The company believes that HT’s would allow them to connect users between various countries including its users in South Korea, Japan and the United States.
The currency will also be available for trading through its exchange platform as well as in pairs with other cryptocurrencies including USDT, Ethereum and Bitcoin. The company also aims to buy back HT based on its market price every quarter using 20% of its net profit in order to address potential concerns over price volatility.