All you need to know about Huobi Global
Founded in 2013 in Beijing by ex-Oracle engineer Leon L, Huobi Global was made to provide a cryptocurrency platform for the people of mainland China and more.
The platform skyrocketed after its launch and became one of China's top 3 cryptocurrency platforms, providing liquidity to those who wish to trade.
Huobi's ecosystem includes spot trading, derivatives trading, staking, crypto loans, crypto yield products, and more, with a strong prevalence in the Asian market.
What is Huobi Global?
In trade volume, Huobi is one of the largest cryptocurrency exchange platforms. In fact, it can be compared to giants like OKX and Bit-Z.
Huobi intended to launch and operate in only Chinese markets, but quickly expanded to more than 130 countries, dominating the Asian market.
Huobi is also one of the oldest cryptocurrency platforms, with teams worldwide in countries like Japan, South Korea, the UK, Australia, Canada, Brazil, and Hong Kong.
In 2018, Huobi launched its own token, Huobi Token (HT), which is listed as one of the top 100 cryptocurrencies today by Coin Market Cap.
How does Huobi work?
The functionality of Huobi Global is quite similar to that of other cryptocurrency platforms.
Users can buy and sell cryptocurrencies while the exchange makes a profit by charging a transaction fee. However, recently, the platform has started focusing on stablecoins backed by the US dollar.
These coins are pegged at the value of the US dollar, making them less susceptible to market volatility. Users can deposit any of the four stablecoins, Paxos Standard, True USD, US Dollar Coin, and Gemini dollars, on the exchange, which are then automatically transferred to Huobi's HUSD. Later, while withdrawing the currency, users can pick from any of the four available stablecoins in a 1:1 ratio.
For instance, a user can deposit one Gemini dollar, which is then automatically converted to one HUSD. While withdrawing, they can opt for one USD Coin. According to Huobi, the HUSD eliminates the need for users to choose between stablecoins and saves on conversion costs.
Issued in 2018 by Huobi Global, the Huobi Token has a total supply of 500 million, of which 300 million were given away as a perk to users who bought a "points card" on Huobi Pro.
The remaining tokens were distributed for user rewards, platform operation, and team incentives. HT was created to boost loyalty after a Chinese crackdown on crypto trading decreased trade volumes. HT is not mined and can be traded on any of Huobi's exchanges.
Huobi Token is the native cryptocurrency of the Huobi exchange, designed to empower the Huobi ecosystem. A chief benefit is that it allows users to reduce trading fees on the platform. When exchanging currencies on the Huobi exchange, a 0.2% fee is charged. However, if the currency exchanged is Huobi Token, a lower fee is charged, which is attractive to high-volume traders.
Huobi also rewards its Huobi Token holders through mining guides and occasional giveaways. Furthermore, holders of Huobi Token can exercise voting rights in deciding which token to add next to the exchange, giving them more control over the platform's development.
Unlike other cryptocurrencies, Huobi Tokens are not mined but can be bought and sold on Huobi exchanges.
The future of Huobi Global
Huobi is expanding its services beyond cryptocurrency exchange by launching futures trading through its own derivative market, creating a public blockchain called Huobi Chain, and announcing expansion plans in the Middle East, Africa, and South Asia regions.
The exchange hopes to attract more sophisticated investors and create the world's most technologically advanced blockchain. The advisory board for Huobi Chain includes Randi Zuckerberg.
Huobi has demonstrated its expertise in cryptocurrency over the past decade, despite regulatory pressures causing significant challenges. The platform has adapted and developed a comprehensive user experience, appealing to investors seeking an alternative to Binance.
With its own blockchain and native currency, Huobi's future looks promising for providing a secure and innovative industry experience.
Author: Tripti Sarda
Spirituality, cats, and a love for pop culture. You will always find me talking about the mountains.