Justin Sun’s Huobi recently declared a conversion from its native token HT to the newly introduced HTX.
According to a press release, the transition from HT to HTX is rooted in Huobi’s commitment to innovation and staying at the forefront of the rapidly evolving blockchain landscape. This strategic shift marks a pivotal moment in the popular cryptocurrency exchange and has captured the attention of investors and enthusiasts alike.
Advantages of the HT Conversion to HTX
HTX, the new token, is touted to offer enhanced features and functionalities, promising a more seamless and efficient trading experience for users. The press release details the start of the conversion process, which involves listing HTX DAO and inviting HT holders to participate voluntarily.
Meanwhile, HTX DAO offers token allocation to HT holders who exchange their HT for HTX. The token conversion will begin on January 22, 2024, and early conversion and more assets will bring a more favorable conversion rate. However, the conversion service will be available from January 22, 2024, to January 20, 2025.
Effective February 2, 2024, the benefits structure for HTX holders shall supersede the current benefits associated with HT. This includes the removal of “Reduce spot/futures fees with HT deduction” and the introduction of “Reduce fees with HTX Deduction.” With these changes, there would be a 25% discount on spot trading fees, a 5% discount on futures trading fees, and a deduction of margin loan interest with HTX.
HTX Conversion Could Change Huobi’s Governance Structure
Furthermore, HTX is designed to address some of the scalability challenges faced by HT, making it a more attractive option for users seeking faster and more reliable transactions. This move aligns with the industry-wide trend of blockchain projects exploiting ways to enhance the efficiency of their networks.
Likewise, the conversion of HTX is expected to bring about changes in the governance structure of the Huobi ecosystem. The new token is likely to play a crucial role in decision-making processes within the platform, giving users a greater say in the direction of the exchange.
Interestingly, this move towards increased decentralization echoes the broader ethos of blockchain technology, emphasizing community participation and empowerment.
In September 2023, the blockchain analytics platform Cyvers identified a security breach in which 5,000 Ether was illicitly transferred from one of HTX’s hot wallets. At that time, Sun firmly asserted that HTX would assume full responsibility for compensating any losses suffered by its users.
To address the situation, HTX proactively introduced a “white-hat bonus.” Subsequently, the company fulfilled its commitment by granting the white-hat bonus, equivalent to 5% of the stolen funds, amounting to nearly $400,000.