Chinese cryptocurrency exchange Huobi releases the token, but it’s not the “ICO”

Chinese cryptocurrency exchange Huobi releases the token, but it’s not the “ICO”

Huobi, formerly one of the largest cryptocurrency exchanges, announced today that it will release its own Huobi Token (HT), based on the standard Ethereum ERC 20.

New production is scheduled to begin on January 23, the proposal will be limited to 500 million coins. According to the statement , 300 million HT will be on sale within 15 days. The rest of the tokens will continue to ensure the operation of the platform, the stimulation commands and rewards users.

In Huobi said that the launch of the token “is not the initial range of coins (ICO)”. Instead, HT 300 million will be sold at a discount to users who buy the package Huobi Pro and pay for it in USDT – cryptocurrency tied to USD. While the details of the packages are not made public, but the company said that a maximum amount of the purchase and the minimum order is 100 HT.

According to Leon Li, the founder of Huobi Group, the news marks the latest step taken Huobi to recover after the business suffered seriously from prosecution by the regulators of China. Since then, he has moved on over the counter (OTC) trading model and took a course on foreign markets.

“Exchange ceased its activities in China on September 15. November 1, 2017 there is a new international platform Huobi Pro. The volume of trading on November 1 was from four to five percent from what it was 15 September,” said Lee. “The termination of activities in China was really significant.”

In fact, thanks to the new issue of tokens, Huobi will be able to charge for the service, increasing the degree of involvement of the user, said Li.

“For example, if You purchase a package of 1000 HT, it will cost just 990 USDT, HT 1000 and You will receive free of charge. Also HT can be used to pay for commissions,” the company said.

The ultimate goal, according to Lee, to turn a HT into an asset, which will bring together users Huobi in Japan, South Korea and the United States in the future. While business registration in USA, will take longer than planned, new businesses in Japan and South Korea due to open in March of this year.

HT will also be available for trading in currency pairs with USDT, BTC or ETH. Guided by fears of price volatility, the exchange Huobi will buy the HT at the market price each quarter from 20% in net profit over the same period.

Lee said that the redeemed funds will be kept in reserve, called the investor protection Fund Huobi.

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