On February 2, 2024, Huobi HTX opened the trading of $HTX tokens, and subsequently, $HTX fluctuated and rose, reaching a high of nearly 0.000002 US dollars before falling back to the issuance price. However, a recent piece of good news has once again caused signs of a rise in $HTX: Huobi HTX officially announced a buyback and burn of $HTX tokens.
$HTX Buyback and Burn Method
On March 1, Huobi HTX officially released an announcement that the trading mining will soon be in public testing, in which, in addition to introducing how to trade mine, it also revealed a very important piece of information.
"All the fee income generated by the daily BTC/USDT trading pair will be fully used for the buyback of $HTX to support the stable growth of $HTX value, and the $HT obtained from the buyback will be fully destroyed!"
In other words, in addition to the normal trading of BTC/USDT, the excess return of $HTX trading mining activities, Huobi HTX will use all the fee income from BTC/USDT trading for the buyback of $HTX and for destruction.
There are two key points of information in this.
The amount used for the buyback is all, note that it is all the fee income of the BTC/USDT trading pair, not just the trading mining. All the spot income of BTC/USDT on the Huobi HTX platform will be used for the buyback of $HTX.
The buyback is done daily. For example, if Huobi earns a fee income of 100,000 U from the BTC/USDT trading pair today, all of this 100,000 U will be used for the buyback of $HTX on the same day.
Significance of $HTX Buyback and Burn
Buyback and burn is almost a basic appreciation strategy for all platform coins, which can ensure the continuous reduction of the total amount of platform coins, thereby maintaining the value of platform coins.
Moreover, this method is generally linked to the trading situation of the platform. The better the trading volume and the higher the income, the faster the destruction speed, similar to the linkage between the stock price of a listed company and the company's earnings.
Therefore, the buyback and burn of $HTX will form a clear positive stimulus for the token price.
In addition, the feature of daily buyback of $HTX, compared to other platforms' quarterly buybacks, will allow this positive stimulus to be reflected in the token price more quickly.
This method of destruction will also have various impacts.
Firstly, by increasing liquidity through trading mining, it will provide users with a better trading experience, reduce trading costs, and improve trading efficiency.
Secondly, this method of destruction also brings more profit opportunities to users of HTX DAO, allowing them to obtain more $HTX by participating in trading mining, and the destruction will also maintain and appreciate the value of $HTX.
More importantly, with the growth and improvement of the HTX DAO ecosystem, users holding HTX will enjoy more governance rights, which will further enhance the value and attractiveness of $HTX, thereby driving its token price up.
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