What is Huobi Prime’s Direct Exchange offering(DPO) and how is it different from Initial Exchange Offering(IEO)?
With its constant research and innovation, Huobi Global is constantly adding value to its exchange to enhance the user experience. Another addition to its list of ever-growing offerings is Huobi Prime. It is an innovative coin listing model for digital assets which enables Huobi users to access new coins in a unique way and is very different from the existing coin listing models.
Also known as the Direct Premium Offering (DPO), one of the features of Huobi Prime is that once users purchase coins, they will automatically receive coins into the account and do not have to wait for the presale. Upon the purchase, these coins can be traded on the Huobi exchange against Huobi’s native token, Huobi Token (HT). HT is currently trading at $2.75 on CoinMarketCap (at the time of writing this article) and has increased in price by more than 150 per cent since the beginning of 2019. Going forward, other trading pairs will also be offered on Huobi Prime.
Source:CoinMarketCap
At a time when Initial Coin Offerings or ICO’s have taken a hit and scam-ridden ICOs in the past have made it difficult for blockchain emerging start-ups to raise funds, start-ups are looking for alternates to crowd-fund their projects. As a result, Initial Exchange offerings(IEOs) have emerged. IEO, a crowd-funding platform, acts as a middle layer between projects and investors and Huobi has taken a step further in launching DPO which is over and above IEOs and has an added advantage: unlike the IEO, Huobi Prime deposits the coins of the users with no delay and users can instantly trade these tokens.
Early access to coins is advantageous to the users as this allows them to purchase coins at below the market price. Huobi, with its stringent listing policy also ensures that only the premium projects are selected on the Huobi exchange. Also, HT holders get access to these premium projects way before they are listed on any other exchange in the crypto world.
Launched on 26 March 2019, the first ever project to be listed on Huobi Prime was the token, TOP. A public-blockchain network, it is a data-sharing service which offers messaging, video calling, CDN, VPN, and IoT data sharing services at a very low-cost and can process thousands of transactions per second. Any scale of investor can take part in Huobi Prime and is not restricted to VIPs or professionals. Successful launch of TOP allowed 1.5 billion TOP tokens to be sold in 19 seconds full with 130,000 people being a part of the sale worldwide.
To protect investors from experiencing extreme volatility and losing their money during the wee hours of market opening, Huobi Prime offers tiered price limits. There are three rounds of coin listing or the “Price Limit” rounds which give users 30 minutes to trade a specific allocation in a specific price range. For example, if Huobi is listing an imaginary coin named Huobi Global Prime Token (HGPT), it could be listed in three tiers at different discounts of 25 per cent, 20 per cent and 15 per cent respectively so that users can hedge their risks from extreme volatility. Also as of now, investors can not exceed $1000 USD in investments if they make purchases on Huobi Prime.
Participating in Huobi Prime is easy and existing Huobi Global account holders can access the coin listing DPO. The next project will be launched on April 16 on Huobi Prime and there is an HT holding requirement to manage the traffic: Average daily holding of 500HT over 30 days’ period before launch (March 17, 00:00:00 to April 15, 23:59:59).
If you are looking to take advantage of this coin listing platform before HT rises to the moon, keep a constant lookout here for the listing announcements. And for those who are looking to raise funds for their extremely innovative and promising blockchain projects can contact the Huobi team here.
