Chinese exchange Huobi announced the launch of its own token based on the Ethereum ERC-20 standard
Huobi Token (HT) is scheduled to launch on January 23rd with a limited supply of 500 million. According to the statement, 300 million NT will be put up for sale within 15 days. The remaining 40% will go to the needs of the platform, stimulating teams and encouraging users.
The exchange emphasized that the new token is not an initial coin offering (ICO). The sale of 300 million NT will be made using discounts that can be obtained when purchasing a package of payment services on HuobiPro using the dollar-pegged cryptocurrency asset USDT.
Details of the packages have not yet been disclosed, but the company said that there will be a maximum purchase limit, and the minimum order cost will be NT 100.
Huobi Group founder Leon Li believes that issuing its own token will help Huobi recover from the costs incurred due to the actions of Chinese regulators regarding cryptocurrency exchanges in the country's domestic market.
“We closed trading on September 15 and opened cryptocurrency trading on November 1, 2017. Sales volumes on November 1 were 4-5% of what they were on September 15,” Lee said. “The impact has been really significant.”
The platform has since moved to an over-the-counter (OTC) trading model and aimed at the overseas market. The ultimate goal of the project, according to Lee, is for HT to be used as an asset. And as the company expands overseas, NT can exchange between users in Japan, South Korea and the US through the Huobi exchange platform.
The NT token will also be available for trading. The company's exchange platform will offer trading pairs for USDT, BTC and ETH with the token. Regarding price volatility, Huobi plans to repurchase HT at market value every quarter with 20% of the net profit for this period.
The repurchased funds will be stored in ethereum as a reserve, called the Huobi Investor Protection Fund. Lee said this reserve fund will be transparent and visible to the public.
Since registering a business in the United States will take longer than previously planned, new branches in Japan and South Korea will open in March.
According to coindesk.com
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