Huobi Token (HT) - A Review of Huobi's Loyalty Token
Huobi, the third-largest cryptocurrency exchange in the world, recently launched its own token called Huobi Token (HT). The token aims to reward exchange users for their loyalty by offering lowered transaction fees and tradable pairs against popular currencies. This review will provide an overview of Huobi Token, its distribution scheme, and its role in Huobi's strategy.
Huobi Token follows the footsteps of other loyalty-building tokens launched by other exchanges, with Binance Coin (BNB) being the most successful example. BNB enabled Binance to become the world's leading exchange by offering discounted trading fees in exchange for customer loyalty, serving as a loyalty rewards system.
Huobi Token Distribution
Huobi officially announced the launch of Huobi Token on January 22, 2018. The distribution took place over 15 days, during which 300 million HT tokens (60% of the total supply) were distributed to pro users who purchased a discounted service package. The tokens were made available on a first-come, first-served basis each morning. Huobi emphasized that this distribution scheme was not an ICO but rather tied to the purchase of a service package, which included HT for discounted trading fees. The launch aimed to recover Huobi's user base following regulatory restrictions in China that significantly impacted trading volume.
The HT token distribution commenced on January 24 and concluded on February 7, 2018. Each day, millions of tokens sold out within minutes of going on sale. By the end of the distribution, 300 million HT had been distributed to Huobi Pro members who bought packages, constituting 60% of the total supply in public circulation. Another 200 million HT (40% of the total supply) was set aside, with 20% allocated for user rewards and platform operation, while the remaining 20% was vested for four years and constituted the team reward.
Comparison with Similar Exchange Tokens
Huobi is not the first exchange to issue its own token. Binance (BNB), Bibox (BIX), KuCoin (KCS), and Coss (COSS) have all issued their own tokens as well. These tokens serve similar purposes of rewarding user loyalty and providing additional functionality within their respective exchange ecosystems.
Huobi Token (HT) is Huobi's loyalty token designed to incentivize user loyalty through lower transaction fees and tradable pairs. The token distribution was successful, with millions of tokens selling out quickly during the distribution period. Huobi Token joins other exchange-based tokens in the market, reflecting the growing trend of exchanges launching their own tokens to enhance user engagement and loyalty.