Huobi Is Launching a Token, But It’s ‘Not an ICO’

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Huobi Is Launching a Token, But Its Not an ICO
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• Huobi, previously one of the major cryptocurrency
  exchanges in China, announced today that it will
  issue its own token based on the ethereum ERC-20
  standard.
• Dubbed the Huobi Token (HT), the new issuance is
  set to start on Jan. 23 with a capped supply of
  500 million. According to the announcement, 300
  million HT (60 percent) will be issued to users
  over a course of 15 days, while reserving the
  remaining 40 percent for platform operation, team
  incentives and user rewards.
• 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.

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• While details of the packages are yet to be
  revealed, the company said there will be a
  maximum limit for each users purchase and the
  minimal order will be 100 HT.
• The news marks the latest move by Huobi to
  recover since the business was severely affected
  by Chinas clampdown on domestic exchanges,
  according to Leon Li, founder of Huobi Group. It
  has since shifted to an over-the-counter (OTC)
  trading model and targeted overseas markets.
• 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 with CoinDesk. The impact was really
  significant.
• Essentially, through the new issuance, Huobi will
  be able to gather service fees upfront while
  increasing the level of user stickiness, Li
  said.

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• For example, if you purchase the 1,000 HT
  package, it will only cost USDT 990, and you will
  get 1,000 HT for free. HT can be used for
  offsetting the trading fees, the company said.
• The ultimate goal, according to Li, is to make HT
  serve as an asset that connects users at Huobis
  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.

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• Meanwhile, HT will also be available for trading
  as the companys exchange platform will offer
  USDT, BTC or ETH trading pairs with the token.
  Addressing potential concerns over price
  volatility, Huobi will buy back HT based on its
  market price every quarter with 20 percent of its
  net profit during the same period.
• Li said the funds bought back will be stored in
  an ethereum address as a reserve, dubbed the
  Huobi Investor Protection Fund, which will be
  made visible to the public.

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