Really? Huobi has burned 150 million HT tokens, and the public chain test network is about to launch open finance.

Competition among exchanges heats up. By: Bing Bang. Source: PANews

On the last day of February, Huobi announced that the Huobi Chain Testnet was officially launched and declared that Huobi Token (HT) would serve as the sole native token of the Huobi Chain. Less than 2 hours after the announcement of the chain, Huobi released another major news: Huobi Global decided to permanently burn all of the operating portion of HT, as well as the investor protection fund portion of HT repurchased from the secondary market in the first and second quarters of 2018, totaling 147.4179 million HT, with a total value of $724 million. The platform will no longer issue HT, marking the official entry of HT into the "absolute deflation" phase. The on-chain burning of HT was completed on the morning of March 1. Despite being later than Binance and OKEx in announcing the chain plan, the consecutive major moves by the three major exchanges have brought the public chain competition into a new stage. The on-chain burning of HT, with a value of $724 million, marks the beginning of "absolute deflation" for Huobi. This action sets Huobi apart from platforms that announced but did not execute burning. According to WhaleAlert data, on March 1, 147,417,900 HT on the Ethereum chain were burned, with a total value of $724 million, officially entering the "absolute deflation" phase. Among the tokens burned, there are 97.3423 million HT from the operating portion that had not been issued, and 50.0756 million HT from the investor protection fund repurchased from the secondary market in the first and second quarters of 2018. Any future risk incidents will be covered by the platform risk guarantee fund instead of the investor protection fund, ensuring comprehensive protection of user rights. In addition, the HT previously used for employee incentives will be repurchased and burned based on a vote result from the third quarter of 2019. This portion of HT, equivalent to 5% of the platform's revenue, will not flow into the secondary market. Huobi's long-term core strategy is to continuously increase the value of HT, emphasizing the importance of injecting long-term value into HT and unifying the value carrier. The platform's commitment to burning circulating supply demonstrates its dedication to increasing the token's value and ensuring market support. Huobi's public chain testnet announcement also revealed another significant development - HT will directly serve as the sole native token of the Huobi Chain. This decision contrasts with OKChain's issuance of OKT tokens upon launch, as Huobi chose to inject the public chain's value into HT. According to Huobi, the decision was made collectively by the platform's leadership and public chain team after considering various factors. Huobi believes that issuing a new token would dilute value, necessitate additional operational efforts, and introduce uncertainties and risks. The integration of HT as the foundation of the public chain is seen as a strategic move to maintain and enhance value within the ecosystem. Huobi's public chain is positioned as a financial public chain, focusing on building a robust infrastructure to support various financial services. The integration of HT as the core token is expected to unlock new possibilities and provide users with innovative features and services within the ecosystem.