Huobi burned 116 percent more tokens this quarter than the previous quarter, influenced by “improving market conditions” and increase in sales, a company statement revealed.
Since establishing Huobi Tokens (HT) in early last year, the Singapore-based cryptocurrency exchange has used 20 percent of its quarterly profits in buying back tokens in a bid to stabilize a volatile market. Because revenues differ from quarter to quarter, Huobi does not burn a fixed amount. For the previous quarter, the firm’s revenues increased, which resulted in 232 percent of tokens burned.
The repurchased tokens are kept in an open ethereum address, called the Huobi Investor Protection Fund, and serve as a reserve fund.
Huobi Group CEO and founder Leon Li 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 firm mentioned growing membership to Huobi Prime and Huobi Fast Track programs – generators of fees – along with 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,” stated Li, referring to upcoming upgrades to the Huobi Finance Chain, a decentralized public blockchain, and enhancements to the high-frequency algorithmic API.
In a different post, the firm stated this token burn cycle “will be the last time HT tokens will be destroyed using the traditional buyback method.”
Moving forward, the firm seeks to use revenues gained in the HT Tiered Fee deduction program exclusively for burning tokens. It will also begin obtaining two-thirds of the burnable tokens from team holdings, and the remainder from the open market. In addition, the firm is planning to switch from quarterly burns to monthly or even daily.
The current total circulating supply of Huobi Token is 478,643,200. The ethereum ERC-20 tokens are utilized to obtain access to “premium coins” through Huobi Prime, as security deposits for businesses on Huobi OTC merchants and to vote.
Huobi Group was launched in 2013 in China and now includes 10 various businesses. It runs in over 130 nations and exceeds $1 trillion in accumulative turnover.