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Huobi Prime

This morning, Huobi officially announced that its preferred listing channel, Huobi Prime, will launch its first project - TOP Network (TOP).

In fact, the news that Huobi Prime will "fire the first shot" has been circulating on the Internet yesterday.

Some Weibo users broke the news that Huobi may specify the entry threshold for Prime users. Only Huojin and Huozuan users, as well as ordinary users whose 30-day average HT holdings are greater than 1,000HT, can participate in the Prime phase trading. Users who do not meet the entry threshold cannot place orders on Prime.

More importantly, unlike Binance Launchpad, Huobi Prime is open to users in mainland China.

Although many media followed up the news, Huobi officials did not respond positively yesterday.

It seems to be non-existent, and it seems to be pretending to be reserved. But at the sensitive moment of the IEO boom, Huobi's every move has attracted much attention.

With much anticipation, Huobi officially announced the Prime currency listing plan today: the first project TOP Network will be launched on the 26th, and it will directly land on the HT area of ​​the main board of Huobi Global to open TOP/HT trading pairs.

The previous rumors that the "user access threshold" of Prime does exist, but it is not as harsh as the rumors: users are not limited to Huojin or Fire Diamond members, and "30-day average HT holdings are greater than 1000HT" becomes "30-day average daily holdings up to 500 HT".

Moreover, because "the time for the first phase of the project is approaching", there is no threshold for holding positions in TOP Network transactions.

In addition to threshold requirements, Huobi Prime also has a "tiered price limit period" setting. In the initial stage of opening, before free trading, users will go through three rounds of "price limit period", and set a maximum tradable price in each round, and users can trade within a range lower than this price. Each round of "price limit period" is 30 minutes. In principle, the price increases sequentially.

According to Huobi’s official announcement, the three rounds of limited prices during the TOP price limit period are: 1 TOP = $0.00177, $0.00213, $0.00255.

In the past, Huobi has always said that Prime does not do IEO. After carefully reading the Huobi announcement, you will find that the Huobi Prime model is indeed somewhat different from IEO.

IEO mode is the abbreviation of Initial Exchange Offerings. To put it simply, it is the fundraising behavior of the platform currency issued by the exchange as the core.

This means that users participate in crowdfunding through exchanges and directly trade with project parties.

The model of Huobi is "directly open transactions", and the trading parties of players are TOP Network investment institutions and early investors.

In Golden Relativity, Huobi Global CEO Qi Ye also said that the Huobi model is different from the IEO model, "On Huobi Prime, early users, community members, and private equity investors trade tokens in the secondary market instead of Fundraising by project parties or exchanges.”

The laws of our country strictly prohibit any personal fundraising behavior. In the document "Reminder on Preventing Illegal Fundraising in the Name of "Virtual Currency" and "Blockchain"" released in August last year, ICO, IFO, and IMO were also named. , IEO and other fundraising methods.

Therefore, Huobi uses this mode of OTC transactions between "players" to bypass supervision.

However, although the mode has changed slightly, the essence has not changed-the platform acts as a referee and selects "high-quality" projects.

Huobi Prime's first project TOP Network is a "chain reform" project. The team previously developed a distributed communication network and three applications based on it - Dingtone, a VoIP application; CoverMe, a message application that supports end-to-end encryption and disappears after reading; and SkyVPN; official information shows that the three The product has a total of 50 million registered users.

Qi Ye believes that the reason for the sudden drop in the popularity of the blockchain in the last round is that there are many impostor projects in the background of ICO, which lead to people's negative attitude towards the blockchain, but at the same time, some high-quality projects have been implicated. The purpose of launching Huobi Prime is to discover these high-quality projects and support them.

In addition, Qi Ye also said that during the period when Prime went online, it should have a very direct promotion effect on HT.

Some industry insiders are also skeptical of Huobi Prime’s model.

"Bitcoin Gold Analyst" believes that Huobi Prime belongs to the ordinary currency listing model, "controlling the purchase of exchange coupons (HT) + quota hunger and thirst marketing, the purpose of which is to raise the price of HT."

More people think that the listing on Huobi does not have crowdfunding, "it is equivalent to selling HT trading pairs in the secondary market directly to players."

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2

Platform currency soars

The time goes back to January 28 this year. On this day, BNB started to skyrocket.

Within two months, the price of BNB has risen from $6 to the current $15, an increase of 150%, outperforming most cryptocurrencies on the market.

The market capitalization ranking of BNB has also continued to climb, from ranking tenth all the way to the current seventh place, and the current market capitalization has surpassed Stellar Lumens, USDT and TRON.

"BNB's skyrocketing price is closely related to Launchpad platform fundraising (IEO)." Hong Chuan, who participated in BitTorrent fundraising and has long been concerned about the cryptocurrency investment market, said.

In early January 2019, Binance announced that it would launch BitTorrent (BTT), a project previously acquired by Justin Sun, on Binance Launchpad, the blockchain asset issuance platform of Binance. BitTorrent is a blockchain project for peer-to-peer file sharing.

On January 28, 59.4 billion BTT were issued on the Launchpad platform, which took about 14 minutes and raised $7.1 million. A few days later, the price of BTT tokens rose from US$0.00012 at the time of fundraising to US$0.00124, an increase of more than 10 times.

"The success of BitTorrent as Binance's first IEO project has driven up the price of BNB," Hong Chuan told 31QU, "This has greatly stimulated the activity of the market, and BNB is a must-have for participating in IEO. definitely."

This year Launchpad successively released three projects including BitTorrent, Fetch.AI, and Celer:

BitTorrent (BTT) was issued in about 14 minutes;

Fetch.AI (FET) completed the issuance within 11 minutes and 14 seconds;

Celer Network (CELR) completed the issuance in 17 minutes and 35 seconds;

Not only is the market reaction hot, but Binance CEO is also full of confidence. In early March, Zhao Changpeng tweeted in response to Coindesk, saying that BNB is leading Bitcoin rather than following it.

Subsequently, Huobi and OKex were unwilling to be outdone, and hinted through different channels that they would start IEO or similar methods, and the prices of the two platform tokens also soared.

From January 18 to the present, the price of HT on the Huobi platform has risen from US$0.8 to US$2.2, an increase of 175%, and the market value ranking has also risen from 22 to the current 16th. The price of OKex platform currency OKB has risen from 0.6 US dollars to the current 1.2 US dollars, an increase of more than 100%, and the global ranking has risen from 29 to the current 22nd.

"The biggest benefit of the exchange's opening of IEO is actually its own platform currency, because the platform currency is basically used to raise funds, which will inevitably cause a shortage of liquidity, and the price increase is inevitable." Hong Chuan said.

In fact, BNB, HT and OKB are not the only three platform currencies that have skyrocketed.

The latest data shows that there are 8 platform coins with an increase of more than 10% within 7 days, and more than 23 platform coins with an increase of more than 5%.

The price increase of platform currency has become a phenomenon.

"One of the reasons for the follow-up rise of the platform currency is the result of the rotation of the platform currency sector," Hong Chuan said, "Other platform currencies will rise by 100% at every turn. If your own platform currency does not rise, customers will definitely be attracted to it." Other platforms speculated on coins and lost customers.”

In fact, the follow-up rise of platform currency is also a good thing for investors.

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Is this really the case?

3

follower's fate

Because the IEO news caused the platform currency to skyrocket, it represented the strength of the exchange to a certain extent. On the other hand, the IEO model also benefited the platform a lot: attracting new users, active transactions, and boosting the platform currency price.

The pioneers have already tasted the benefits, and more exchanges are just around the corner and ready to go.

As soon as the news that Huobi will launch its first Prime project after 6 days, several exchanges immediately told 31QU that similar projects will be launched soon.

The person in charge of an exchange told 31QU that they are designing an IEO plan.

“As early as when Binance launched Launchpad this year, we wanted to promote a similar IEO method.” The above-mentioned person in charge said, “Especially recently, we have been discussing IEO and platform tokens every day, and we will launch them when the time is right.”

However, the exchange's IEO plan has been "under design". First, it is worried that users are not active enough, and second, it cannot find high-quality projects for the time being.

An employee of another exchange said that the company had no IEO plan before, but in the past few days, it suddenly announced that "the IEO will also be launched".

Earlier, an alliance of more than ten exchanges responded to Binance’s new gameplay.

In early March this year, a platform-like currency called KTN appeared. According to reports, this currency supported by joint endorsements and physical projects of 15 exchanges will be launched on these exchanges in the form of joint offering. For a while, there were endless rumors about "the second and third-tier exchanges jointly issued the platform currency KTN against Binance" and "the central exchange's vertical and horizontal alliances".

However, the exchanges that tested the waters of IEO found that this kind of gameplay endorsed by the reputation of the exchange is not universal.

Yesterday, Celer Network, the third project of Binance Launchpad this year, completed the crowdfunding in just 17 minutes and 35 seconds. Among them, a total of 24,000 people signed the user agreement, 19,860 people participated in the snap-up, but only 3,129 people succeeded.

“I have to admit that Binance is really good at building momentum.” The above-mentioned employee told 31QU that more IEOs of exchanges are still in preparation, and some of them have already begun to show signs of decline.

On March 12, Bittrex International, a subsidiary of Bittrex, announced that it will conduct its first IEO project in three days. In the announcement, the excitement of "we are making history" is beyond words.

However, in the early hours of the day when the project was launched, Bittrex International announced that it would cancel the planned first IEO project RAID because "(the project has changed) we do not believe that promoting IEO is in the interests of users." The promises in the announcement are in stark contrast.

In the IEO mode, the platform currency is not all "following the wind".

Jinhua, who just participated in the IEO rush of BKEX exchange two days ago, was quite touched. He told 31QU that he also hoped to get a piece of the pie after seeing the IEO hype and many exchanges following suit and launching similar projects. , but I didn’t expect it, and in the end, “I didn’t make any money, but was cut off instead.”

"At first, I thought it was impossible for the exchange to lose money." Jinhua said that he bought a large amount of platform currency before the project was launched, and prepared to "do a big job". Success, once the project was over, I found that the platform currency dropped by 20 points." "This is too deceitful." Jinhua finally sold this part of the currency at a low price and left the market neatly.

It is understood that this project that Jinhua participates in also restricts the participation of Chinese and Americans, "the reason is that it will abide by the laws and regulations of relevant countries." When 31QU asked which countries the successful users mainly came from, the exchange replied , "The data is in the technology, it is not clear."

In addition, this project was also revealed by those who wanted to, "all members of the team are fake", and the photos of all team members can be found on the Internet. Male models, construction photographers, etc.

Although this was an unpleasant "investment" experience, Jinhua, who was "beaten with chicken blood", told 31QU, "It is better not to play projects on small platforms, and you can still try projects on large platforms."

From this point of view, the IEO that adopts the limited rush purchase model is destined to be a game for only a few exchanges and a few players.

The IEO frenzy continues as further revelations of Huobi Prime’s plans are revealed.

It is difficult for us to judge whether IEO will start a new round of bull market, but what we can be sure of is that this kind of gameplay that relies on the reputation endorsement of the trading platform, once the tokens are launched and the project runs away, the benefits brought to the exchange will be It is a fatal blow.

epilogue

epilogue

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