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The Huobi token surpasses its competitors - The Multicoin Capital investment fund has a buyer bias on tokens exchanges published a draft investment thesis on the Huobi Token. As a reminder, the Huobi Token is an exchange type token, like the BNance of Binance.
The key points of the Huobi Token investment thesis
Multicoin Capital has a bullish bias on tokens exchanges. The fund thus believes in a recent report that exchanges are the best placed in the race for the valuation of transactions in cryptocurrencies. With the possibility of creating tokenomics for a token exchange , this asset sub-class is more interesting.
The thesis of the Capital multicoin Huobi Token is summarized in six points :
- Huobi is one of the leaders, if not the leader, of the exchange market in China . Exposing yourself to the Huobi Token is a way of exposing yourself to the entire Asian crypto ecosystem;
- Huobi is in second place on the spot trading market behind Binance , second also on the derivatives market behind BINANCE and still second in open interest, behind BitMex;
- Huobi is a platform that shows transparency ;
- Huobi develops a wide range of services around its platform, which can all be connected to tokenomics of Huobi Token ;
- The Huobi Chain code on which the Huobi token is based is completely open source , unlike all of its competitors. They are collaborating with a specific project to develop it: Nervos;
- The buyback ratio is 4.4 times greater than its competitors .
Huobi Token offers 4.4 times more buyback than its competitors
I will zoom on this point. However, other parts are very interesting. It is for example explained in detail in this consequent report what happened during the famous ICO ban in 2017 in China . I also find details on the relationship between Huobi and the Chinese government .
The buyback is the fact that a project to reduce the total supply of tokens available in one way or another. Binance , for example, destroys tokens it already owns and does not buy them on the market. The buyback allows thus to artificially increase the demand for a constant supply.
Huobi uses 20% of its revenues to reduce the supply of Huobi Token every month . The company then uses these assets to increase the platform's insurance fund .
- 15% are bought on the market,
- 5% come from the tokens it owns.
The buyback ratio of the huobi token has a clear divergence from its colleagues.
At constant capitalization, Huobi buys 4.45 times more tokens than its competitors, thus creating significantly greater pressure on demand.
Huobi Token Price Analysis
The price of the Huobi token $ HT will be compared to Bitcoin, then to the USD.
The price of the Huobi token (HT) against Bitcoin
The price graph of the Huobi Token evaluated against Bitcoin over a period of 3 days .
The picture here is clear but not directional. We are in the long term in a huge compression , with highs always lower and lows always high . There is an oblique support which seems valiantly defended by the buyers.
The price of the Huobi token (HT) against the USD
The graph of the course of Huobi Token is valued against the dollar over a period of three days .
We are in the long term (900 days) in a huge consolidation of the price of HT, with very high volatility . We have found significant support at $ 2.2 for 450 days now, with the same initial resistance zone , located between $ 5 and $ 6.
In the shorter term (100 days), the price of the Huobi Token consolidates around $ 4 .
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