Huobi Burns 1.9 Million HT Tokens in Q2 2023, Significantly Boosts Revenue to $26 Million

Huobi Burns 1.9 Million HT Tokens in Q2 2023, Significantly Boosts Revenue to $26 Million

Renowned crypto exchange Huobi made headlines recently as Chinese reporter Colin Wu took to Twitter to reveal their latest development. During the second quarter of 2023, Huobi conducted an impressive burn of 1,950,555 Huobi Tokens (HT), catching the attention of the crypto community.

The substantial number of tokens burnt is a result of Huobi’s decision to allocate 20% of its revenue towards the burning mechanism. Based on this burn amount and considering HT’s trading value at $2.77, experts estimate that Huobi’s revenue for Q2 reached an impressive $26 million. This marks a significant increase compared to the reported revenue of $16.55 million in Q1.

The recent burn also contributes to the cumulative burn total of HT, which now stands at 298,940,224 HT as of July 15, 2023. This move showcases Huobi’s commitment to reducing the circulating supply of HT, which could potentially lead to an increase in its value over time.

CoinMarketCap, a well-known market tracker, reveals that the current circulating supply of HT is approximately 162 million. Moreover, Huobi disclosed that the circulating deflation rate for the quarter stood at 0.9066%.

It’s worth noting that Huobi made changes to its burning practices last December, aligning them with other leading crypto exchanges by transitioning from monthly to quarterly burns. This decision was made in response to feedback from the HT community.

In April, Huobi’s last burn data was announced, indicating a burn of 827,226 HT. Comparing this figure to the second quarter’s burn of over 1.9 million, it becomes evident that the exchange burned 235% more tokens during this quarter.

Huobi’s revenue comes from various sources, including trading fees from spot, futures, and OTC trading, interest from margin loans, withdrawal fees, and income generated by other products and services.

With the impressive burn numbers and commitment to reducing circulating supply, Huobi continues to solidify its position in the crypto space as a significant player, drawing attention from investors and enthusiasts alike.