Huobi, one of China’s former big three markets, has begun issuing its symbol, insisting at the same time that it is not an ICO.
Beijing Huobi announced the launch of its token, now called Huobi Token (HT). The efficiency token is based on the EREC-20 standard of the Ethereum blockchain and will be limited to 500 million chips. Huobi Token, short for HT, is a token system based on the launch and management of Blockchain, Huobi explained in a post on this site.
Ad details show that 300 million (60%) will be available for purchase to investors over a 15-day period. Another 100 million chips (20%) will be utilized for platform operations and user prizes, while the remaining 100 million tokens will be saved for team incentives.
In a press release, the exchange insists that the offer is not an open-ended ICO to all investors. The 300 million of HT will only be granted to users who purchase a Point Package, essentially a Huobi Pro prepaid card pack using the dollar-dollar return link USDT.
An extract from the notice read:
HT is not a primary offering of coins (ICO). Users can get HT only by purchasing the “Point Card” on Huobi Pro. Point card is Huobi prepaid card for basic service charge. 1 point = 1 USDT.
Huobi chips, which will likely serve as a useful asset for multi-shifting exchanges at Huobi, will be available for trading with Tether, Ethereum, and Bitcoin as of 1 February.
Also, Huobi insists he will repurchase the Huobi Tokens Open Market with 20% of his net income, placing a proportion of tokens to the Huobi Investors Protection Fund, a reserve to compensate and protect investors against market volatility, and loss.
Huobi was one of China’s largest crypto-trading platforms, ahead of internal regulations that effectively hindered the industry. Following the closure of the Chinese trading platform in October, Huobi founder Leon Li summed up the appeal for the Chinese curtain as a benchmark for industry before launching Huobi Pro, its Singapore-based international trading platform.
Huobi’s statement of offering his token is yet another step in the diversification strategy of the former Chinese exchange giant, which includes expansion in major crypto-markets markets in South Korea and Japan.