In an attempt to reduce the supply of Huobi Token (HT), the crypto exchange has burned 14 million of its native token that fuels its decentralized platform.
Per the announcement, the exchange destroyed 14,011,700 HT, keeping the total circulation amount at 246,437,000 tokens.
The Singapore-headquartered exchange vowed to spend 20 percent of its quarterly revenue generated from Huobi Global and Huobi DM to repurchase its native token, thus controlling its supply.
However, due to “improving market conditions” the amount of token destroyed by the exchange’s this quarter increased by 116 percent from the previous one. Huobi started burning tokens on April 15, and since then it removed 21,356,800 HT from circulation.
“In order to further enhance the transparency of HT destruction and reduce the impact of the release of team allocation reserves on the market, Huobi will carry out further enhancements to the token burn program,” the announcement stated.
ACB Investment Announces Expansion of its Product LineGo to article >>
To make the process transparent, Huobi is also keeping all the repurchased tokens in a visible Ethereum address and labeled it as Huobi Investor Protection Fund to use it in some crisis.
With the ongoing bull in the market, HT surged significantly – going up from its value at $0.9 in early February to the current price of $4.13 apiece, according to Coinmarket.com.
“There are two big trends reflecting the size of this quarter’s buyback. The first is a rapidly strengthening market for digital assets and the other is the increasing popularity of our entire product line,” Leon Li, founder and chief executive of the exchange, said.
Apart from Huobi, other major exchanges are also engaged in the process of buyback and burning native tokens. Binance recently burned more than 8 million BNB tokens worth around $24 million from its team’s allocations. The exchange is aiming to keep only 100 million BNB tokens in circulation.
Earlier this month, Bitfinex also repurchased and burned LEO tokens with 27 percent of the revenue generated from its initial exchange offering (IEO) platform.
Per the announcement, […]
LONDON--(BUSINESS WIRE)-- Argo will also have an option to boost mining capacity by up to 1360 petahash (PH), or 1.36… Read More
Mark Mobius, founding partner of Mobius Capital Partners claims bitcoin's emergence will further drive investors to gold. | Source: REUTERS/Francis… Read More
Bitcoin price is having a volatile week. | Source: Shutterstock By CCN Markets : Since August 15, in less than… Read More
- Innovative 'HODLbox' enables subscribers to exploit nascent cryptos - LONDON, Aug. 20, 2019 /PRNewswire/ -- Online Blockchain plc (… Read More
Maharashtra , the second largest state in India, announced that they will be using blockchain technology in a wide variety… Read More
Jeremy Allaire, CEO at cryptocurrency financial services company Circle, expressed his optimism in regards to Bitcoin ( BTC ) being… Read More