After Binance and Bittrex, Huobi has now jumped into the coin offering sector with the launch of Huobi Prime.
Aimed at retail traders, the platform will offer tokens to before they are listed on the crypto exchanges.
Commenting on the new platform, Leon Li, founder and CEO of Huobi Group, said: “Customer demand and user needs are at the forefront of everything we do here at Huobi. Huobi Prime is very much an extension of that. We’ve designed it from the ground up to be a more innovative, direct, and responsive way to access up-and-coming new tokens.”
In the press release, the Singapore-based exchange detailed that the listing will be done in three rounds and each will last for 30 minutes. Moreover, though the price will be capped, it will increase in each round.
“If Huobi Prime listed a coin called Huobi Premium Example Token (HPET), HPET tokens might be made available at a discount of 30% off in the first round, 20% off in the second, and a 10% discount in the third,” Huobi explained.
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The platform will also cap the investment of each investor at $500 worth Huobi token. In addition, to join any offering at Huobi Prime, the interested investors should hold at least 500 Huobi tokens for 30 days prior to the launch of the offering.
The crypto exchange also stated that the platform will prefer the blockchain projects which have received investment from Huobi Capital or the Global Ecosystem Fund. As the first project, the platform will list TOP Network, a blockchain-based low-cost messaging platform.
“While we had a number of really strong candidates for Huobi Prime’s inaugural launch, we were really impressed by TOP Network’s ambitious business model, as well as the fact that it will be the first true high-performance public chain with a pre-existing user base in the millions,” Ross Zhang, head of marketing for Huobi Group, said.
Hosting Token Sale is the New Step
Malta-registered crypto exchange Bittrex recently launched a similar token offering platform called Bittrex International. Though the platform was set to host its first “initial exchange offering” (IEO) with RAID’s native token, it later canceled the offering, hours before the scheduled launch, citing the terminated partnership between RAID and OP.GG.
Binance, on the other hand, has become very successful with its Binance Launchpad. After hosting offerings for the tokens of BitTorrent and Fetch.AI, the platform recently managed the token sale for Celer, which raised $4 million in 17 minutes.