HT to Capture the Market by Burning and Locking Value
Few days ago, Chinese major crypto exchange OKEx destroyed the unissued 700 million OKB to achieve extreme deflation aggressively and it took the lead in terms of market price rise as investors gave mixed reviews Many investors turned their eyes to HT, Huobi’s exchange token. On the afternoon of February 15, Huobi released the monthly report of HT in January this year.
Last week, Huobi issued an announcement that it adjusted the cycle of repurchase and destruction in 2020, from “quarterly destruction” to “monthly destruction”, and the first quarter is trial operation according to the suggestions of community users. This announcement is not issued after the destruction of OKB, but has been planned before the destruction of OKB. Obviously, the announcement is not implemented due to external pressure, but the result of the internal overall operation.
The total destruction amount of HT in January alone was 4.0568 million, more than half of that in the fourth quarter of 2019. On a monthly basis, the average amount of HT burnt in the fourth quarter of 2019 is 2.6866 million, and the amount in January 2020 is 1.5 times of that in the previous quarter.
The trading activity in January can also be observed from the data on the chain. According to the data on the TokenGazer, the bitcoin cold wallet balance of the Huobi exchange has been on the rise, with a total amount of 2.5 billion U.S. dollars. Judging from the data of the number and growth rate of new recharge addresses, the activity of existing users and the change of balance on the chain, Huobi is the top three among major crypto exchanges.
The increase of spot and contract trading volume contributed to the surge of destruction in January, and the destruction of Huobi will also be included in the new business – perpetual swap.
According to the monthly report, Huobi perpetual swap has started internal measurement and will be online in the near future. Meanwhile, the revenue of perpetual swap will also be included in the scope of HT repurchase. According to the previous data of Huobi, the performance of sustainable contracts is also worthy of investors’ expectation as the volume of delivery contracts can be the first in the world in 8 months. Moreover, perpetual swap is more conducive to expanding overseas markets. The increased revenue will directly increase the destruction of HT. A third-party organization estimates that the destruction of HT will increase by about 30% again.
On February 14, eco exchange of Huobi mining pool launched a special trading zone for locking value, that is, the digital assets locked in the Huobi mining pool can be transferred to the eco exchange of Huobi mining pool for trading after being converted into corresponding token. The first token prepared is the EOS with flexible lock-in in the Huobi mining pool, which can be converted into EOSS with trading right free of charge according to 1:1 proportion, and can be transferred to the Huobi mining pool ecological exchange for real-time trading. During the period of holding EOSS, users can still enjoy the reward of daily locking and mining HPT, and the mining reward after being traded can also be transferred together, and EOSS can also be converted into EOS reverse with 1:1 proportion.
The trading function of locked value is an innovation of the crypto exchange in the aspect of POS / DPOS lock trading, which solves the trading demand of user’s locked assets as HT has also become an important potential target of locked trading.
C2C coin borrowing function will start the internal test in March. At that time, those who meet HT’s holding requirements can borrow BTC, USDT with compensation to gain profits. This function can only be unlocked if the user holds a certain amount of HT, and the more HT being held, the higher the loanable share will be.
In addition to C2C coin borrowing, the HBDM perpetual swap that has begun internal testing will also support HT as the contract guarantee asset in the near future, and online pledge the loan contract asset for low-risk users.
As market popularity booms, the demand of investors’ mortgage loan will also increase. The C2C loan and HT mortgage loan contract asset function of Huobi can obtain a good leverage for investors in the future, thus promoting the HT ecological scene and strengthening the retention and expansion of users.