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Huobi offering a new token, but it’s not an ICO

A cryptocurrency exchange called Huobi started offering new tokens for sale on January 23rd. The new token is called Huobi Token (HT) and the number of tokens is limited to 500 million coins, out of which 300 million will be offered to investors, while the rest will be kept for user rewards and team prizes.

However, this offer should not be seen as an initial coin offering (ICO) project. The announcement from Huobi says only active users of the platform can get Huobi tokens: “HT is not an ICO. The users can get HT only by buying “Point Card” on Huobi Pro. A point card is a prepaid card used for the basic services on the platform. One point is equal to one Tether (USDT).”

The announcement also says the company would direct 20% of its profit each year to the HT repurchase programme. By structuring its services on the network, the company will collect the fees in advance and maintain the loyalty of the buyers on a long-term basis. The company says: “For example, if you buy a package of 1,000 Huobi tokens, it will cost you only 990 dollars and you will get 1,000 HTs for free. HT can only be used to cover the trading fees.”

This token offering is the latest attempt of Huobi to restructure its business model after the Chinese government introduced new regulations towards the cryptocurrency exchanges and ICO projects.

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