Huobi announced it has increased spending on its token burning scheme 232 percent quarter-over-quarter, ignited by “improving market conditions” and sales growth, according to a company statement.
Over the past quarter, Huobi held eight token burning events of a total 21,356,800 Houbi Tokens (HT) native to its platform, representing a 116 percent increase in burnt HTs from the first quarter of 2019.
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 for the $504 billion trading volume Huobi DM platform.
“The rest of 2019 will see even more improvements and innovations coming from Huobi,” said Li, pointing to coming upgrades to the Huobi Finance Chain, a decentralized finance public blockchain, and improvements to the high frequency algorithmic API.
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.”
Going forward, the company looks to use revenues generated in the HT Tiered Fee deduction program to directly burn tokens. It will also start sourcing two-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.
As of today, the total circulating supply of the ethereum ERC-20 token is 478,643,200. The native tokens are used to gain access to “premium coins” through Huobi Prime, as security deposits for merchants on its over the counter exchange, Huobi OTC merchants, and to vote.
At first HT issuance in early 2018 the company announced its intention to spend 20 percent of its quarterly revenue on token buybacks to temper market volatility. The company said the repurchased tokens would be stored in a visible ethereum address, dubbed the Huobi Investor Protection Fund, to act as a reserve.
Huobi Group was established in 2013 in China, and now comprises 10 seperate businesses. It operates in more than 130 countries, and exceeds $1 trillion in accumulative turnover.
Image via Shutterstock.