Blockchain Investor Analysis

Huobi Token

HT
Current Price $4.33 (+3.66%)
Huobi Token (HT) was issued by Singapore-based digital asset exchange Huobi Global in early 2018. The Huobi Global Ecological Token, which is its full name, is an Ethereum-based ERC20 token that provides Huobi exchange users with discounts and other benefits within the Huobi ecosystem.

Our Rating:

Market

Problem that it solves

Huobi Token enables Huobi exchange users to receive discounts plus other benefits within the broader Huobi Global ecosystem.

Customers

The primary HT holder will be a Huobi exchange user who wants to benefit from the discounts on trading fees.

Value creation

For frequent traders, a discount in trading fees is a valuable proposition.

Market structure

HT targets specifically Huobi exchange users.

Market size

The upside potential for Huobi to attract more users and, thus, also potential HT holders, is substantial.

Regulatory risks

So far, exchange tokens have been categorized as a utility token. However, the potential for exchange tokens to be categorized as securities in the future is a real threat to Huobi.

Average Market Score

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Competitive Advantage

Technology/blockchain platform

The Huobi Token operates as an ERC20 token on the battle-tested Ethereum blockchain, one of the most secure distributed ledger networks in the world.

Lead time advantage

Huobi is one of the first-generation digital asset exchanges that was launched before crypto went mainstream. As a result, the exchange is able to compete with the leading trading platforms.

Contacts and networks

As a leading digital asset exchange based in Singapore, Huobi has access to effectively anyone in the industry. Most notably, in the Asia-Pacific region.

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Management Team

Entrepreneurial Team

Huobi was launched in 2013 and has been able to maintain its position as a leading digital asset exchange despite having to manage the difficult regulatory environment during its early years.

Industry/technical experience

Huobi's core team members have an excellent track record and are considered

Integrity

To date, Huobi's management has shown that they care about the users and have been open and communicative to their users about issues on their platform.

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Token Mechanics

Token required

For traders, exchange tokens like HT make sense. For non-traders and individuals outside of the Huobi ecosystem, Huobi token has no value add (except potentially as an investment).

Value added

Huobi was not the first exchange token and it has very similar features as other exchange tokens. However, Huobi is one of the more prestigious exchanges to have issued a token.

Decentralized

A large portion of HTs are held by the exchange. The company Huobi effectively has complete control of the coin's supply management.

Token supply

There is a total supply of 500 million HT. Currently, around 236 million are in circulation. Huobi regularly buys back and/or burns tokens to manage the HT token supply.

Public exchange

HT is listed on a large number of exchanges, including Huobi Global, Binance Jersey, CoinEx, BiBox, LBank, BiKi, and DragonEx. However, there are very few reputable trading platforms that support the exchange token.

MVP

Huobi has been operating for over five years and is one of the most reputable global digital asset exchanges.

Average Token Mechanics Score

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User Adoption

Technical difficulty

While turning traders on Huobi into HT tokenholders is not too difficult, attracting non-Huobi users to their token is not an easy feat. Therefore, Huobi Token will struggle to develop the reach of a classic digital currency such as Litecoin, for example.

Halo Effect

Huobi is a leading digital asset exchange that services customers across the globe. Huobi Token, therefore, benefits from its issuing company's strong reputation.

Buzz

Huobi Global also has a strong social media presence and a large community of traders across the globe. While Huobi Token's buzz cannot be compared to that of Bitcoin or Ethereum, there is substantial interest in the token within its own community.

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Overall Score

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Blockchain Investor Analysis

Huobi Token (HT) is targeted primarily at Huobi Global users - most notably active traders - who benefit from discounted trading fees. Outside of the Huobi ecosystem, there is no real use case for the token. In that sense, HT can be seen as a proxy for the success of Huobi Global.

However, exchange tokens (from reputable exchanges) are among the more popular tokens out there as they have a real use case and a ready-made userbase. As such, our relatively high Investor Scorecard rating of 3.67 reflects the demand for HT by traders on Huobi as well as the exchange's regular burning of tokens to limit supply.

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