Huobi Global, which is one of the largest and oldest crypto exchanges in the world, has announced that it has burned the Huobi Token worth $48.6 million during June which is a periodic process that it carries out to support the value of the token in the long and short term as well.
The average price of the token when it was burned was 12.8 USDT and 3.797 million tokens were burned during the month. As of this month, the total number of Huobi tokens is 224.65 million.
“The greatest value support of HT comes from the every-month burn. Alongside the more strict and severe financial supervision from countries around the world, many blockchain companies have become sluggish in this recent market. Even in such circumstances, Huobi maintains a resilient development in its global business and a relatively high token burn amount in June,” stated Ciara Sun, Vice President of Huobi Global Markets.
By reducing the number of tokens in the ecosystem by burning them, the exchange hopes that the price would be supported well as the lesser number of tokens available would mean that the supply is reduced while the demand remains the same. The company has been following this process diligently while it continues with its growth and expansion plans globally. Recently, it added five new payment methods for the Argentinian Peso which is growing into an important market for crypto companies.
Many FX and crypto companies are looking to expand into South American countries like Mexico, Argentina, Brazil, etc as the markets in Asia and Europe begin to get saturated or get very tightly controlled by regulators that the companies begin to feel suffocated as they are not able to innovate or try different things. This is one of the main reasons why such companies look for new countries and regions to expand into so that they can experiment and innovate more as the regulations in such regions are not as strict as in many of the highly developed countries.
Huobi had also received the PCI certification recently in a bid to increase the security of the exchange and bring in more trust in the exchange especially with many institutions being onboarded into the crypto space and this would be a very important consideration for such companies.