HT aims to launch a "lock reduction" combination punch, platform battle imminent

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HT aims to launch a "lock reduction" combination punch, platform battle imminent

Exchanges are indeed the eternal "talk of the town." In 2018, trading and mining; the "new listing" craze in the first half of 2019, reversed the market's decline; at the beginning of 2020, under the halving market and sweeping reforms, the platform coins on exchanges once again initiated an upward trend.

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Recently, OKB underwent significant changes, receiving mixed reviews from investors, but leading in terms of market price momentum. Many investors concerned about missing out have shifted their focus to HT. Yesterday (February 15th), Huobi announced HT's January monthly report, indicating HT's recent series of announcements.
PANews observed that Huobi released monthly HT destruction data for the first time yesterday. Just the previous week, Huobi announced, in response to suggestions from the community users, that it adjusted the 2020 repurchase destruction cycle from "quarterly destruction" to "monthly destruction," to be trialed for one quarter. It is important to note that this announcement was not made after OKB's destruction, but was planned before it. This indicates that the destruction announcement cycle is not implemented due to external pressure, but rather as a result of internal operational coordination.
Looking at the latest HT destruction data, the total destruction in January alone was 4.0568 million tokens, exceeding half of the destruction in the fourth quarter of 2019. Calculating the average monthly destruction, the average monthly destruction of HT in the fourth quarter of 2019 was 2.6866 million tokens, and the January 2020 destruction was 1.5 times that of the previous quarter's monthly destruction.
If the total destruction quantity remains consistent throughout 2020 and in January, the total destruction will be approximately 48.6816 million tokens, which is 122% of the total HT destruction in 2019. Considering January falls during the traditional low trading period of the Lunar New Year, non-small data indicates that the volume during the past year, with the Spring Festival in 2019 being a low point compared to the whole year, combined with the current market enthusiasm, this estimate is still considered conservative.
Based on on-chain data, Huobi's Bitcoin cold wallet balance has been consistently increasing, with the total asset scale reaching $2.5 billion. According to Chain.info's Bitcoin exchange on-chain data for January, the competition between exchanges suggests that Huobi may be the biggest winner. From the number and growth rate of new recharge addresses, the activity of existing users, and changes in on-chain balances, Huobi ranks among the top three.
Data Source | Chain.info
Contract data shows that Huobi's quarterly contract holdings have reached new heights since the beginning of the year, in line with the market's heating up.
Data Source | TokenGazer
The growth in spot and contract trading volumes has led to a significant increase in the amount of destruction in January, and Huobi's destruction will also include a new business—the perpetual contract.
According to the latest monthly report, Huobi's perpetual contracts have begun internal testing and will be launched soon. Additionally, revenue from perpetual contract business will be included in the repurchase of HT. Based on Huobi's past data, the delivery contract volume can achieve global dominance in 8 months, and the performance of perpetual contracts is also worth investors' anticipation. Moreover, perpetual contracts are more conducive to expanding overseas markets, as increased revenue for Huobi will directly increase HT destruction. Third-party institutions estimate that HT destruction may increase by around 30%.
On February 14th, Huobi upgraded its Huobi VIP benefits, where holding or trading mainstream currencies can earn "Huobi Points." The higher the Huobi Points, the greater the corresponding VIP benefits. HT has been included in the Huobi Points calculation system and is now eligible for more benefits compared to before.
Given the current situation, the latest round of benefits includes protective masks for elite and above users, provided exclusively by Huobi (with a protection efficiency greater than 95%). Other perks such as increased leverage borrowing limits, withdrawal limits, and fast deposit and withdrawal services are tangible benefits for investors. In addition to these practical benefits, another value of Huobi VIP is the status it conveys.
Huobi's adjustment of VIP benefits is expected to attract mid-tier users to increase their HT holdings in pursuit of VIP benefits, with an estimated over 200 potential VIP users and potential buyers of 8 million HT.
Currently, the trend of HT holding by large holders remains stable, with a noticeable increase in the number of addresses holding HT by retail investors in recent times. According to PANews statistics, there has been an approximately 6.2% increase in the number of addresses holding HT over the past month, possibly driven by small asset exchanges.
On January 16, 2020, Huobi's small asset exchange function for HT was launched on the web, making it easier for small asset holders to seamlessly exchange assets for HT. This function meets the demands of many retail investors. Preliminary estimates suggest that after the launch of the small asset exchange function for HT, there will be around 500,000 potential buyers, accelerating the growth of HT holders.
Another recent innovation was the introduction of a lockable trading section on Huobi Pool's ecological exchange on February 14th, where digital assets locked in Huobi Pool can be exchanged for corresponding tokens and traded on Huobi Pool's ecological exchange. The initial token available for exchange is the EOS chosen for flexible locking in Huobi Pool, which can be freely converted 1:1 into tradable EOSS, transferrable to Huobi Pool's ecological exchange for real-time trading. Holders of EOSS will continue to receive daily lockup mining rewards during the holding period, and mining rewards after trading will also be transferred, with EOSS also being able to be converted back to EOS on a 1:1 basis.
The lockable trading feature is an innovative direction for exchanges in POS/DPOS lockup, addressing the trading needs of locked assets for users. HT has become a potentially significant trading target in lockable trading.
As the new market cycle begins, investors are looking to bolster their holdings, reigniting the demand for borrowing and lending.
The growth in DeFi lockup indicates an increase in borrowing demand. According to DeFi Pulse data, the market value of DeFi lockups continues to increase, recently reaching $100 million. However, due to the current performance limitations of public chains, users in DeFi lending products do not have a satisfactory experience. Under regulatory pressures, users often need to access DeFi products through agents. Additionally, decentralized security is also a concern. On February 15th, the DeFi lending protocol bZx was reported to have a vulnerability, resulting in a loss of $350,000 worth of ETH.
HT's January report reveals that the C2C lending feature is in the development pipeline and will begin internal testing in March. Eligible HT holders will be able to lend out assets such as BTC and USDT for interest income. This function requires users to hold a certain amount of HT to unlock, and the more HT held, the higher the lending amount available.
In addition to C2C lending, the ongoing internal testing of HBDM perpetual contracts will soon support HT as collateral assets for contracts, offering HT pledge lending contract assets for low-risk users.
With the increasing market enthusiasm, the demand for collateral lending is expected to grow. Huobi's C2C lending and HT pledge lending contract assets will provide investors with good leverage opportunities in the future, advancing the HT ecosystem, enhancing user retention and expansion.
Another point worth mentioning is that the advancement of these two features will further increase HT's "soft lockup," tightening HT's market circulation once again.
In the blockchain industry, exchanges are currently the most mature and profitable models, and the most likely to produce "blue-chip stocks." By referring to the revenue data published by various exchanges and considering a key indicator in the stock market, the price-earnings ratio, one may gauge their potential.
Due to the different nature of cryptocurrencies and stocks, estimating the future revenue capabilities of exchanges is not straightforward. Calculating the price-earnings ratio of platform tokens will also differ, as we cannot calculate the price-earnings ratio of platform tokens based on dividends.
PANews attempts to calculate the "Platform Token Market Sales Rate" by dividing the total market value of the platform token by the annual repurchase amount, based on price data as of 12:00 on February 15th.
HT currently has a total supply of 454 million tokens, a price of $4.93, and a total market value of $2.238 billion. In 2019, a total of 39.8797 million tokens were repurchased, calculated at the repurchase price, resulting in a total repurchase amount of $127 million. Through static data calculation (excluding future HT repurchases), $2.238 billion divided by $127 million, the HT Market Sales Rate is 17.49.
After the destruction of OKB, the total supply is 286 million tokens, priced at $6.36, with a total market value of $1.818 billion. According to data from OKEx's website, OKB started repurchasing from May and repurchased a total of 12.0492 million OKB in the second half of the year. Calculating the total repurchase for the whole year based on the second half year data multiplied by 2, the total annual repurchase amount is approximately $63.9084 million. Through static data calculation (excluding future OKB repurchases), $1.818 billion divided by $63 million, the OKB Market Sales Rate is 28.85.
BNB has a total supply of 183 million tokens, priced at $25.7, with a total market value of $4.703 billion. According to Binance's official data, a total of 591.73 tokens were repurchased in 2019, resulting in a total repurchase amount of $1.17 billion. Through static data calculation (excluding future BNB repurchases), $4.703 billion divided by $1.17 billion, the BNB Market Sales Rate is 40.02.
Compared to the common stock price-earnings ratio index, HT falls within a normal range and is relatively undervalued. OKB and BNB's market sales rates have surpassed those of giants like Google and Amazon.
Assessing the value of platform tokens accurately based solely on price and price-earnings ratio is insufficient. Ultimately, it is essential to return to the platform's comprehensive capabilities. A simple principle is that the more profit a platform earns, the higher the amount of platform tokens that can be repurchased, making the platform token's price performance more appealing. Therefore, the driving force behind the platform token price lies within the platform itself.
OKB's one-time destruction of unlocked tokens, as compared to BNB, directly stimulates HT. To some extent, this also acts as a stimulus and ignites Huobi's comprehensive operations.
It is worth noting that as cryptocurrency investors, changes in a platform token's price alone are generally insufficient to prompt a switch in trading platforms. Users prioritize aspects such as user experience, exchange depth, and asset security. The competition among exchanges ultimately returns to the core of user service. In the long run, time remains the best litmus test.

This article is from our partner PANews

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