Crypto exchange Huobi has revealed in a recent report that it has bought back and burned up to 4.872 million Huobi Token (HT), amounting to a whopping $23 million.
The amount of HT burned in August is also up by 97% from the previous month. According to the report, Huobi has already burned a total of 219.17 million HT as of September 15.
Along with the token burning, Huobi has also launched a couple of products and services that cater to the needs of decentralized finance (DeFi) customers, namely DeFi Mining and Yield Farming.
In fact, the exchange has already recorded a locked amount of 33.3 million HT. As of September 14, the exchange has distributed about $3 million in USDT to its DeFi event participants.
Earlier this year, Huobi has already begun providing HBTC, its first asset-backed DeFi token on the Ethereum blockchain. It will also launch DeFi counterparts for DOT, LTC, and BCH afterward, assuring that it will “continue to listen to community voices” and offer more cross-chain asset options on Ethereum in the future.
Token burning is a practice common among cryptocurrency companies including top exchange Binance, that aim to regulate the value of their native asset. This happens by reducing the amount of assets that circulate among the network and its participants, thereby preventing inflation. Thus, the asset’s price will remain competitive, taking into consideration its use cases and speculative value.