Following a series of major moves, the price of Huobi Token (HT), the platform token issued by the world’s leading virtual asset exchange Huobi Global, has grabbed the attention of many investors, due to a near doubling in price within the space of a week. Discussions have naturally ensued as to whether HT will maintain its stellar price performance.
HT’s price surge began shortly after Huobi Global announced a change in its majority shareholder to About Capital, which has now become the controlling shareholder of the exchange. Shortly after the announcement, Huobi Global unveiled the members of its Global Advisory Board, whose members include H.E. Justin Sun, founder of TRON, and Ambassador and Permanent Representative of Grenada to the WTO.
We shall now analyze the fundamentals behind HT in a bid to determine its future performance.
As Huobi Global’s platform token, HT is a decentralized cryptocurrency based on the Ethereum blockchain, with a limited total supply of 500 million. HT was developed based on the token system issued and managed through blockchain and can be used in multiple scenarios within the Huobi ecosystem.
Healthy burning mechanism
Token burning refers to the process of removing crypto tokens from circulation in perpetuity, which is supposedly deflationary and meant to bring a store of value appeal to the token. In contrast with the concept in traditional finance, where deflation means a consistent price decline, a deflationary token in crypto refers to the one whose circulating supply decreases over time, making it an inflation-resistant asset.
Huobi Global burns 15% of its revenue’s worth in HTs every month and allocates a further 5% of its total income to repurchase and burn a portion of HT used for team incentives.
To ensure transparency for HT holders, Huobi Global releases a HT Operations Monthly Report detailing the monthly status of HT. The latest one, dated September 2022, was released on October 15.
According to the report, Huobi Global burned 411,000 HT (valued at about 1.863 million USDT) in September 2022, which was 1.23% less than the number burned in August 2022. As of October 15, 2022, the number of burned HT combined has reached 295.509 million. The HT deflation rate stands at 0.19%.
The existing supply of HT stands at 204,490,828 HT while the current circulation amount is 162,683,587 HT, the report reads.
About Capital has unveiled its plan to boost Huobi Global’s brand image on the worldwide stage.
Since joining the Global Advisory Board, H.E. Sun, a prominent blockchain entrepreneur, has repeatedly expressed his determination to promote the development of HT, in order to bring value to HT holders.
During a recent interview with Bloomberg, Sun declared he is highly optimistic about Huobi Global’s future prospects and the value appreciation of HT. According to the Bloomberg report, Sun began accumulating HT in 2013.
“I would see myself as one of the biggest holders” of Huobi Tokens in the world,” Sun said during the Bloomberg interview.
In a series of tweets, Sun also expressed his determination to strengthen HT and to take Huobi Global back to being one of the top 3 virtual asset exchanges by trading volume.
In addition to Sun’s remarks, Huobi Global is also moving to bring more perks to its users. For example, the exchange offers zero transaction fees for all ten USDD trading pairs, including BTC/USDD and ETH/USDD trading pairs.
HT’s price has skyrocketed since October 10, trending upward from 4 USDT to 8.2 USDT within the space of a week. Such positive price movements signal bright prospects for both the token and Huobi Global, and leave no doubt that HT’s price will continue to surge, as Huobi Global embarks on its expansion plans.
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