7 Reasons To Like Huobi
Everyone in the cryptocurrency space should be familiar with exchanges. If not, do check out this article before continuing. Currently, there are multiple exchanges (centralized and decentralized) that individuals can use to change tokens from one form to another. With several platforms performing the same service, how can an exchange truly set itself apart from the rest?
1. High Liquidity
Liquidity is important for any trader/investor. If there are only a handful of tokens with low volume on the exchange, traders/investors will either be…
a) forced to hold tokens against their will
b) unable to purchase tokens they have their eye on
2. Over-the-counter Services
Huobi makes it easy for people to enter the crypto market with huobi.com, where users are able to easily exchange fiat for cryptocurrency. Making it convenient to invest in cryptocurrency is a key milestone to pave the way for mainstream adoption.
3. Volatility Protection
Cryptocurrencies have earned a reputation for being volatile. There are jokes in the community about the price fluctuations, and while they are funny to observers, it is no laughing matter to investors who have significant amounts of fiat locked up in a token or coin.
Huobi conducts regular ‘buy-backs’ of excess Huobi Tokens (price as of writing HT $1.67) in circulation. These tokens are then put into the Huobi Protection Fund: a reserve that is used to combat volatility and maintain the value of HT at a favorable level for its investors.
In this market, security is not something to be taken lightly; exchanges have lost millions of dollars’ worth of tokens from cyber-attacks. Huobi has made the bold claim that they have not been hacked in the past five years — and there has been no evidence to the contrary as of yet.
Huobi takes the voice of the community seriously. With the introduction of Huobi Autonomous Digital Asset Exchange (HADAX), members of the Huobi community are able to vote for ICOs they feel should be listed on HADAX.
You can browse through the full process of voting here, but one of the areas that really stands out is that each ICO has to place a deposit, which will be refunded over a period of 12 months. This deposit is used to refund users in the case that the project is delisted (e.g. not enough liquidity, team is disbanded etc).
The price of the security deposit varies, but ICOs are incentivized to place a larger amount as it counts towards their scoring (30% of the score), while votes take up the other 70%.
By including users when they list ICOs, Huobi ensures that the community helps to grow the space in a way that is beneficial for all, a practice that has yet to be successfully replicated elsewhere.
More than that, Huobi offers 24/7 customer service, pre-trade education, and as an integrated compensation system — actions speak louder than words, and Huobi is going to great lengths to take care of their community members.
With hundreds of ICOs popping up, users are spoilt for choice when it comes to voting for a project to be listed; they might not have the time, nor the knowledge, to accurately gauge the potential of a project.
To combat this, Huobi has introduced ‘supernodes’. These supernodes are professional investing organizationswith excellent track records, and are the first to vote for projects. Their votes represent their recommendation for listing the project on HADAX — more super votes a project receives, the more priority it gets when being shown to the community. In this way, regular members are guaranteed to be shown projects of the highest quality first and foremost, with the option of looking down the list if they are keen.
If ALL the supernodes vote for a project, the project is immediately recommended to Huobi Pro (if, and only if, they pass the auditing process of Huobi Pro).
7. Established Worldwide
Unlike a certain exchange that has fled to Malta, Huobi has expanded its offices to major cities around the world. They have offices in the United States, Hong Kong, Japan, Singapore, Korea, and China.
While it makes minimal difference to the user experience in the short-term, it speaks volumes about the company’s long-term intentions. Rather than fleeing from legislative uncertainty, Huobi has taken pains to ensure that their model remains compliant even in nations where cryptocurrency is heavily clamped down on. Thy are in this for the long run.
By doing so, they become a model for other cryptocurrency related businesses — they are proof that cryptocurrency can be accepted, and compliant, throughout the world.
HT is a token that is essential for enhancing the Huobi business model as an exchange and more. From voting rights and airdrops to reparations for users, HT allows Huobi to bring exchanges to the next level — it brings about stability, security, and the ability to sustain long-term growth.
P.S: CryptoGrinders is not being paid for this review. However, the more we read about Huobi, the more we like what we see. Please feel free to comments, we would love to know what you guys think about Huobi as well!
4 April 2018