Huobi Burns 116% more HT Tokens than Last Month
Due to the growth of the income, Huobi has managed to increase to the number of HT to burn. This quarter has become 232% more profitable than the previous.
Huobi, one of the oldest cryptoexchanges existing, decided to increase the spendings on the burning HT program. The company cited “improving market conditions” and income growth for the decision.
Huobi has run 8 burning sessions since April 15. 21 356 800 HT were destroyed, which is 6 474 800 HT (116%) more than in the previous quarter.
Every 4 months, starting with 2018, the Singapore-based exchange provides 20% of the income to buy the tokens back. The step is aimed at stabilization of the price and limit of inflation. The repurchased tokens are located in a public Ethereum address, called Huobi Investor Protection Fund, acting as a reserve fund.
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.
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.” It has also proposed to start sourcing one-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.
We recall that as a response to the accusation of faking the trading volumes, Huobi had carried out the inside investigation, and allegedly didn’t find a system problem.