UPDATE: Vote concluded and according to official twitter handle of Huobi, HT Token Burn got the highest vote. Stay tuned for more info as they release it. Follow @HuobiGlobal on Twitter for live updates.
It is very interesting getting to know that Huobi will be allowing the crypto community to decide what it should do with Huobi buyback, either to airdrop it back to community for different exercises or burn it off totally to reduce the maximum supply of HT that will ever exist.
In this article, we will first have a look at what Airdrop and token burn is all about and then compares and contrast both to see the positive and negative influence either can have on HT future.
What is Airdrop?
According to MyCryptoDictionary definition, Airdrop It is the free giveaway of a particular cryptocurrency coin/token to the community that is supportive of the crypto project. It also serves as an incentive for hodling a particular coin/token.
The early airdrop practice was based on a purpose to gain an early community of users who can get excited about the coin/token project and evangelize it for the developer.
Beyond the early use, airdrop is now a common practice adopted to encourage loyalty of the community continuously toward the project at different stages of the crypto project life cycle.
Advantages of Airdropping HT Buyback
Considering MyCDApp definition of Airdrop above, Huobi token (HT) airdrop will likely have some advantages as follows:
- More exposure of the HT and project behind it
- Increase loyalty of the community
- Incentives for activities like social media follow, retweets and others will help the Huobi community expand faster
- Crypto community is used to airdrop and will always gravitate towards it which in turn could make easily turn then to become user of Huobi exchange
Disadvantages of Airdropping HT Buyback
There seems to be little to no disadvantages but yet lets critically look at one or two for HT,
- Negative price movement: one of the disadvantage of airdrop is that when too many people get crypto coin/token for free, they usually don’t have much perceived value of it real worth and could sell it off below the market price just to cash out but if they had purchased with their money or received it as payment for work done. They are more conscious of selling it low. The overall effect of this is that HT may remain in very low price zone for long
- Consistent price drop: As explained in (1) above, it may eventually result in the HT price most time experiencing Bear market than Bull run.
- It also attract those that do not have interest in the project and will possibly never do anything to support it than get the free HT tokens and dump in it to exit.
What Is Token Burn?
According to MyCryptoDictionary definition, Token burn happens when a certain percentage of cryptocurrency tokens maximum supply is totally destroyed and rendered unspendable forever. It may be sent to the gateway, where they are burned (destroyed by sending them to an unspendable address).
Usually done to destroy what is considered excessive supply to reduce the maximum supply of a token and increase it’s value.
Advantages of HT Token Burn
- Decrease in HT maximum supply: In cryptosphere the less the maximum supply, the better a token is perceived
- Value Increase: When the maximum supply is reduced, HT will gain more value per token
Disadvantages of Airdropping HT
- It could be just a waste of money. As in, seeing real cash been burn off its not pleasurable to neither the sight nor the heart. LMAO!!!
How To Participate in the HT Vote For Airdrop or Token Burn?
It’s very interesting that anyone can participate even with 1HT (about $1.2) in your account and you should too because it is an opportunity to have a say in the future of HT (If you don’t have an account, click here to open Huobi exchange account for free now). No other could guide on how this voting will take place better than Huobi. Thus, I have included word-for-word as posted on their official blog below to help get prepared ahead of the voting.
Existing Repurchase Program:
Currently, Huobi repurchases HT with 20% of its quarterly revenue and airdrops them to existing HT holders.
Some members of the HT community supporting the program so that the repurchased HT are burned instead of redistributed in order to decrease the supply of current HT in circulation.
HT holders will vote on how they would like the HT repurchase program to move forward by voting for airdropping or burning HT tokens. Whichever course of action earns more than 50% of the vote will be adopted.
The vote is open to all HT holders. The future of HT is up to you, please vote and let your voice be heard in our community!
Snapshot of HT held: 23:59:59 on December 2 (Singapore time)
Voting Period: December 3, 2018 15:00 to December 6, 15:00 (Singapore time)
Who: Users with more than 1 HT in their account can vote.
– Each HT you own entitles you to one vote
– Each user can only cast their votes once
– Results will be announced within five working days following the voting
– Percentage of votes will be calculated relative to the total number of votes
– Trading of HT and cryptocurrency assets will not be affected
If you don’t have an account you need one to prepared ahead of this voting, click here to open Huobi exchange account for free now
Personally (not general view and not intended to influence your vote decision in any way). After considering the advantages and disadvantages of Airdrop and token burn for HT as discussed in this article, I will vote for the latter.
Kindly do your own researches before you invest in any crypto project because the above is for information purpose only, and not to be taken as professional or legal investment/trading advice.