Asian exchange Huobi announced a few days ago that it has burned through $35.05 million in HT tokens.
Huobi HT token burn
Specifically, 2.69 million Huobi Tokens (HT) were burned in August, when they were worth $35 million. In total, counting from the beginning of 2021, $543 million in HT were burned, with a deflation rate of 1.15% in August.
Thanks to these burns, Huobi’s native token has risen 190% over the past year.
Jeff Mei, Director of Global Strategy at Huobi, said:
“There’s a high probability that the digital asset market will continue to thaw in the next few months, and the number of HTs burned is also expected to rise in tandem with Huobi Global’s globalization efforts”.
How token burning works
Token burning procedures are designed to decrease the number of coins on the market in order to increase their price indirectly by decreasing supply.
Huobi is not the only company to have set up this system. For example, Binance, Zilliqa or Eidoo also burn their tokens every month according to different rules.
The latest news on Huobi
The exchange is working to expand, particularly in Europe, where it has launched an initiative to give away 1.3 billion Shiba Inu to new members by September 20.
It will also soon celebrate its eighth anniversary, knowing that in recent years it has become one of the largest crypto exchanges in the industry.
According to data from CoinMarketCap, Huobi currently ranks third in the world by volume only behind Binance and Coinbase.
Huobi also recently announced a $10 million fund to invest in GameFi, blockchain-based gaming that also leverages NFTs and “Play to Earn” mechanisms.
As noted in a report released by CryptoCompare, Huobi saw its volumes nearly double in August, posting 82.4% growth in spot volumes to trade $177.8 billion.