Following the results of the second quarter of 2019, one of the oldest cryptocurrency exchanges in the world, Huobi, decided to reduce the supply of its own tokens, Huobi Token (HT). They burned 14 011 700 HT out of 310 318 300 HT, note that this is 116% more than in the previous quarter. This decision was explained in the company by “improved market conditions” and increased profits.
This step should stabilize the cost of the token, and it will also motivate users to hold the coin, thereby restraining its inflation. Every quarter, since the beginning of 2018, the Huobi Exchange has spent 20% of its profits on the purchase and destruction of its own tokens. During all this time, the tokens burning occurred 8 times for a total of 21 356 800 HT.
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.”
In a separate report, the company stated that this burning tokens cycle “will be the last time HT tokens will be destroyed using the traditional buyback method.”
In the future, the company plans to use revenues generated in the HT Tiered Fee deduction program for direct burning of tokens.
Recall that the Huobi Group was founded back in 2013 in China, and as of the moment, it unites 10 separate companies, the total turnover of which exceeds 1 trillion US dollars.
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