Houbi burned 116 percent more tokens this quarter than last, ignited by “improving market conditions” and sales growth, according to a company statement.
Since issuing Huobi Tokens (HT) in early 2018 the Singapore-based crypto exchange has spent 20 percent of its quarterly revenues buying back outstanding tokens in an effort to stabilize a volatile market. Revenues fluctuate quarter to quarter, meaning Huobi does not burn a consistent amount. This past quarter, driven by strong growth, the company’s revenues put towards its token burning plan increased 232 percent.
The repurchased tokens are stored in a visible ethereum address, dubbed the Huobi Investor Protection Fund, and act as a reserve fund.
Over the past quarter, Huobi held eight token burning events of a total 21,356,800 Houbi Tokens (HT) native to its platform, more than the 6,474,800 tokens it repurchased in the first quarter.
Leon Li, CEO and Founder of Huobi Group said:
“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.”
The company cited increasing membership to Huobi Prime and Huobi FastTrack programs – generators of fees – as well as a productive spring for the $504 billion trading volume Huobi DM platform.
“The rest of 2019 will see even more improvements and innovations coming from Huobi,” said Li, pointing to coming upgrades to the Huobi Finance Chain, a decentralized finance public blockchain, and improvements to the high frequency algorithmic API.
In a separate post, the company said this token burn cycle “will be the last time HT tokens will be destroyed using the traditional buyback method.”
Going forward, the company looks to use revenues generated in the HT Tiered Fee deduction program to directly burn tokens. It will also start sourcing two-thirds of the burnable tokens from team holdings, and the rest from the open market. Additionally, the company is considering switching to monthly or daily burns, from quarterly.
As of today, the total circulating supply of the ethereum ERC-20 token is 478,643,200. The native tokens are used to gain access to “premium coins” through Huobi Prime, as security deposits for merchants on its over the counter exchange, Huobi OTC merchants, and to vote.
Huobi Group was established in 2013 in China, and now comprises 10 seperate businesses. It operates in more than 130 countries, and exceeds $1 trillion in accumulative turnover.
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