Huobi, a famous cryptocurrency exchange, has made headlines for their large token burn in the second quarter of 2023. According to Wu Blockchain, Huobi burned an astonishing 1,950,555 Huobi Tokens (HT) during this moment.
By allocating 20% of its revenues to the burning mechanism, the exchange displayed its commitment to reducing the amount of HT in circulation. Based on the estimated burn amount, Huobi’s Q2 revenue is expected to be approximately $26 million, which corresponds to nearly $5.4 million at HT’s selling price of $2.77. This is a significant increase above the $16.55 million recorded in Q1.
The total quantity of burnt Huobi Tokens as of 15 July 2023 is an incredible 298,940,224 HT. This continuous token burn strategy was created in the hopes of enhancing HT value by reducing accessible supply. According to CoinMarketCap statistics, there are now approximately 162 million HT tokens in circulation.
Huobi recorded a quarterly deflation rate in circulation of 0.9066%. Because the number of HT in circulation diminishes over time, this gives further evidence in support of the token burn technique.
In response to feedback from the HT community, Huobi transitioned its burning practices from monthly to quarterly burns last December, aligning with other leading crypto exchanges. The last burn data was announced in April, where the exchange burned 827,226 HT. Comparatively, the second-quarter burn witnessed a significant increase of 235%, with over 1.9 million tokens burned.
It is worth noting that Huobi’s revenue comprises various sources, including trading fees from spot, futures, and OTC trading, interest from margin loans, withdrawal fees, and other products and services.
Huobi’s latest token burn showcases its commitment to reducing the circulating supply of HT, potentially bolstering its value. As the exchange continues to implement its burning mechanism and diversify revenue streams, the market will closely observe the impact on Huobi Token and its position within the crypto landscape.
