Earlier this year Huobi Global’s platform, Huobi Pro, launched the Huobi User Protection Fund. Which will be using 20% of the transaction fees it collects during each season to buy back Huobi Tokens from the open market and store them in the newly created Huobi User Protection Fund.
Since the years of rapid growth, the size of Huobi Pro’s own assets has now become bigger than all of the user’s hot wallet assets combined. This enables Huobi Pro to provide assurance to users since the bought-back Huobi Tokens will be used to protect users’ interest and compensate for their losses in cases of emergency. To avoid volatility all the funds will be converted into USDT.
We have seen cryptocurrency exchanges being targeted lately. We remember the The Mt Gox hack where $6 billion were stolen from the platform. In January the Japanese exchange Coincheck was targeted and $530 Million got stolen, and recently Binance was a target and was offering a bounty to anyone who supplies information that leads to the legal arrest of the hackers involved in the attempted hacking incident. This shows that the exchanges are an interesting target for todays hackers.
Although Huobi hasn’t had any security breaches, they decided to take precautions and measures to give its users a piece of mind. This is where the The Huobi Security Reserve comes in handy. The Reserve will cover losses related to the security breaches in full compensation.
The buyback in the first quarter has been completed, and the information is as follows:
Huobi Token circulation information:
1. Total supply in the market: 303,129,300
Rewards of Point Card purchase: 300,013,500
Marketing promotion: 639,200
Employee incentive: 2,476,700
2. Total locked: 704,546
OTC merchants locked: 4,860,000
Super Node/Super Partner locked: 15,200,000
Voting revenue locked: 29,027,000
Project team locked (security deposit): 12,000,000
Others locked: 34,700
Secondary market buyback locked: 9,332,900
3. Current circulation amount (thousands): 232,764,700
Circulation = total amount in the market — total locked