Beijing-based cryptocurrency giant Huobi has announced the launch of its own token, dubbed ‘Huobi Token (HT)’ today. The utility token is based on the Ethereum blockchain’s ERC-20 standard and will be capped at 500 million tokens. ‘Huobi Token, short for “HT”, is a token system based on Blockchain launching and management,’ Huobi explained in a post on its website.
Huobi said the token launch “is not an initial coin offering (ICO).” Instead, the 300 million HT will be given to users who purchase a service fee package at a discount on Huobi Pro using tether (USDT) – a crypto token pegged to the U.S. dollar. Other cryptocurrencies that can also facilitate the purchase include bitcoin, bitcoin cash, ethereum, litecoin and ethereum classic.
Details from the announcement reveal 300 million (60%) HT will be available for sale to investors, over a 15-day period. A further 100 million tokens (20%) will be used for platform operations and user rewards whereas the remaining 100 million tokens will be reserved for team incentives.
While details of the packages are yet to be revealed, the company said there will be a maximum limit for each user’s purchase and the minimal order will be 100 HT.
An excerpt from the announcement read:
“HT is not an initial coin offering (ICO). Users can only get HT by purchasing ‘Point Card’ on Huobi Pro. Point Card is Huobi’s pre-paid card for basic service charge. 1 point = 1 USDT.”
Huobi Tokens, which will presumably serve as an asset for exchange at Huobi’s several exchanges globally, will be available for trading with tether, bitcoin and ethereum from February 1.
Furthermore, Huobi also insists that it will buy back Huobi Tokens from the open market with 20% of its net income, putting a ‘certain proportion’ of the tokens to the Huobi Investor Protection Fund, a reserve to compensate and safeguard investors against market volatility and losses.
Huobi was among China’s biggest cryptocurrency trading platforms prior to crippling domestic regulations that effectively curtailed the industry. After closing its Chinese trading platform in October, Huobi founder Leon Li summed up China’s curtain call as a “watershed moment” for the industry before launching Huobi Pro, its international trading platform headquartered in Singapore.
“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,” Li said in an interview. “The impact was really significant.”
The ultimate goal, according to Li, is to make HT serve as an asset that connects users at Huobi’s exchanges in Japan, South Korea and the U.S. in the future, as the company expands overseas.
While business registration in the U.S. is expected to take some time, Li added, the new ventures in Japan and South Korea are planned to open in March this year.