In an attempt to reduce the supply of Huobi Token (HT), crypto exchange Huobi has burned 14 million of its native token that fuels its decentralized platform.
Per the announcement, the exchange destroyed 14,011,700 HT, keeping the total circulating amount at 246,437,000 tokens.
The Singapore-headquartered exchange vowed to spend 20 percent of its quarterly revenue generated from Huobi Global and Huobi DM to repurchase its native token, thus controlling its supply.
However, due to “improving market conditions,” the number of tokens destroyed by the exchange this quarter increased by 116 percent from the previous one. Huobi started burning tokens on April 15, and since then it removed 21,356,800 HT from circulation.
“In order to further enhance the transparency of HT destruction and reduce the impact of the release of team allocation reserves on the market, Huobi will carry out further enhancements to the token burn program,” the announcement stated.
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Impressive figures due to market surge
To make the process transparent, Huobi is also keeping all repurchased tokens in a visible Ethereum address and labeled it as Huobi Investor Protection Fund to use it in case of crisis.
With the ongoing bull in the market, HT surged significantly – going up from its value at $0.9 in early February to the current price of $4.13 apiece, according to Coinmarket.com.
“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,” Leon Li, founder and chief executive of the exchange, said.
Apart from Huobi, other major exchanges are also engaged in the process of buyback and burning native tokens. Binance recently burned more than 8 million BNB tokens worth around $24 million from its team’s allocations. The exchange is aiming to keep only 100 million BNB tokens in circulation.
Earlier this month, Bitfinex also repurchased and burned LEO tokens with 27 percent of the revenue generated from its initial exchange offering (IEO) platform.