Huobi is a top global cryptocurrency exchange offering a reliable platform for trading virtual currencies. Established in China in 2013 and now based in Singapore, Huobi operates in over 170 countries.
It provides diverse products and services, making crypto trading accessible to individual and institutional investors.
This beginner guide will cover Huobi, how it functions, and all the essential information to help you begin your crypto trading journey.
What Is Huobi Token (HT)?
Huobi Token (HT) is the native digital asset of Huobi Global, a cryptocurrency exchange. Launched in January 2018, HT operates on the Ethereum blockchain as an ERC-20 token. The reputation of Huobi Global and other factors influence its value.
HT serves various purposes, including reducing trading commissions on the exchange, typically paid from users’ wallets. Beyond this, it facilitates a flexible marketing strategy for Huobi to attract new users.
Users can use the HT coin to purchase monthly VIP-status plans, gaining discounts on transaction fees. Coin holders enjoy voting rights on exchange decisions, receive crypto rewards during seasonal buybacks, and gain early access to special events.
Additionally, the HT coin can be traded for other cryptocurrencies. Huobi Token is crucial in incentivizing user engagement and participation on the Huobi Global platform.
Who Are the Founders of Huobi Token?
Leon Li, the CEO of Huobi Group, graduated from Tsinghua University and became a Bitcoin advocate in 2011. After working at Oracle, he founded Huobi Group in 2013 and transformed it into a significant player in digital asset financial services.
Jun Du, Huobi’s co-founder, previously held positions as a community operations director at Comsenz and worked at Tencent. Apart from his role at Huobi, Du is the CEO of Node Capital, a blockchain-focused venture capital firm. He is also the founder of Jinse, a blockchain service platform, and co-CEO at BiKi.com, a digital currency trading software provider. Du has co-founded other companies, including AToken and Chainup.
In 2018, Herbert Rafael Sim, founder of Crypto Chain University and a contributor to Forbes, The Huffington Post, and Wardrobe Trends Fashion, joined Huobi Group. Sim, who is responsible for digital marketing, serves as the public relations director at Huobi, bringing his impressive track record to contribute to the company’s development.
How Does Huobi Token Work?
Huobi Token (HT) operates within the Huobi Eco Chain, which supports decentralized finance (DeFi) applications like decentralized lending and borrowing platforms.
Its purpose is to enhance the user experience on the Huobi Exchange by providing opportunities to explore new cryptocurrencies, save on trading fees, and participate in platform decision-making.
HT, an ERC-20 token on the Ethereum network, plays a crucial role in the functionality of the Huobi ecosystem.
What is Huobi Token used for?
- Smooth Operation of the Exchange
HT is integral to the smooth functioning of Huobi’s centralized exchange. It was introduced as a response to Binance’s BNB token, aiming to compete and serve as a common mode of payment across the Huobi ecosystem.
- Payment Method
HT is widely used as a mode of payment within the Huobi ecosystem, including over-the-counter (OTC) trading and corporate payments.
- Promotional Airdrops and Rewards
HT facilitates promotional airdrops, and holders are rewarded with HT whenever the exchange lists new cryptocurrencies. These rewards incentivize holding HT and promote the newly listed assets on the platform.
- Investor Protection Fund
Tokens purchased by the exchange contribute to an Investor Protection Fund. This fund is designed to compensate for financial losses from traders and investors due to various factors, such as fraudulent activities or system failures. It acts as a safety net to mitigate potential risks.
What Makes Huobi Token (HT) Unique?
Huobi Token (HT) is unique because:
- Fee Reduction: It lowers trading fees on the Huobi Global exchange, making transactions cheaper for users who hold and use HT.
- VIP Benefits: HT holders can buy VIP plans for discounts, creating a tiered system that rewards users for using and holding HT.
- Voting Power: HT holders can vote on certain exchange decisions, giving them a say in how the platform is governed.
- Rewards and Buybacks: Users may get crypto rewards through buyback programs, potentially benefiting from the platform’s growth.
- Early Access: HT holders get early access to special events, like new token listings, enhancing their experience on the platform.
- Tradeability: HT can be traded for other cryptocurrencies, providing liquidity and making it accessible in the broader crypto market.
How Many Huobi Token (HT) Coins Are There in Circulation?
Huobi Token was introduced in early 2018 through a non-traditional method, deviating from the standard ICO (Initial Coin Offering) model. Instead, Huobi opted for an initial exchange offering (IEO) approach.
In this process, HT tokens were directly distributed to VIP users, while regular traders could acquire a service package using a specific quantity of tokens.
With a total capped supply of 500 million, the initial distribution allocated 60% (300 million coins) to exchange users, while the company retained 40% (200 million coins) in reserve. Creating and distributing its token was key in boosting the exchange’s capitalization.
Furthermore, the token was a mechanism to foster user loyalty by providing exclusive advantages through its diverse functionalities.
How Is the Huobi Token Network Secured?
The security of the Huobi ecosystem is reinforced through a distributed architecture and an anti-DDoS protection system. Notably, 98% of the currency is stored in a multisig cold wallet, enhancing the safety of user assets. The platform employs a risk control system known as “Don’t Be Evil” to safeguard user accounts and assets.
Since 2018, Huobi has implemented an asset protection system called the Security Reservation Mechanism.
Additionally, in January, the platform introduced the Investor Protection Fund. These measures provide insurance for HT holders, offering protection against financial losses resulting from fraudulent activities or other risks associated with cryptocurrency trading.
These initiatives underline Huobi’s commitment to ensuring the security and protection of its users’ assets within the cryptocurrency landscape.
Huobi is a top global cryptocurrency trading platform with a comprehensive array of products and services. This beginner’s guide covered the key fundamentals – from opening accounts to trading, withdrawing, product features, and security assurances. With this knowledge, both novice and seasoned traders can use Huobi’s liquidity, reliability, and innovations in the evolving crypto market.
- What is Huobi Token (HT) and how can I use it?
Huobi Token (HT) is the native token of Huobi, offering benefits such as fee discounts, VIP status privileges, voting rights, and participation in token sales. Users can also trade HT on the platform and enjoy various perks tied to its use.
- What security measures does Huobi have in place?
Huobi employs robust security measures, including two-factor authentication (2FA) to enhance account security. Users can enable 2FA for an extra layer of protection. Additionally, Huobi uses a withdrawal whitelist feature, allowing users to specify trusted withdrawal addresses, adding an extra layer of security against unauthorized withdrawals. Reviewing and setting up these security features in your account settings is recommended.