Disclosure: Multicoin Capital maintains structured policies to manage conflicts of interest related to investments. The firm holds HT, BNB, FTT, and LEO tokens and adheres to a "no-trade policy" for 3 days post-publication.
Introduction
Exchange platform tokens represent one of the most compelling segments in crypto, combining real utility with growth potential. Our previous argument highlighted their role as gateways to open finance. Centralized exchanges like Huobi, OKEx, and Binance have successfully integrated derivatives, challenging specialized platforms (e.g., BitMEX).
Token economics further enhance value:
- Huobi offers staking/mining programs.
- Binance provides Launchpad access.
HT appears undervalued due to East-West information asymmetry, presenting a strong investment case.
Key Catalysts for HT
China’s Blockchain Adoption:
- Huobi’s OTC platform is the primary RMB gateway for crypto newcomers.
- Government-endorsed blockchain initiatives boost legitimacy.
Authentic Trading Volume:
- Second-largest BTC custodian (after Coinbase).
- Top 2 in spot/derivatives volume (behind Binance) and open interest (after BitMEX).
Transparency Efforts:
- HT destruction reports address skepticism.
Product Expansion:
- Derivatives and planned offerings (options, staking).
Huobi Chain:
- Open-source, Nervos-supported "compliant" exchange blockchain.
Buyback Yield:
- 17.8% LTM burn rate implies a $4.3B valuation (345% upside).
Market Misconceptions
- Western Skepticism: Actual volume and custody data contradict "fake volume" narratives.
- Valuation Gap: HT’s buyback rate is 4.4x the industry average—suggesting mispricing.
👉 Explore Huobi’s latest initiatives
Investment Thesis
HT combines:
- Strong fundamentals.
- High-yield tokenomics.
- Regulatory tailwinds.
We view it as a top risk-adjusted opportunity in crypto.
FAQ
Q: Is Huobi’s volume trustworthy?
A: Yes—third-party audits confirm custody holdings and trading activity.
Q: What drives HT’s buyback yield?
A: 20% of Huobi’s profits are used to repurchase HT monthly.
Q: How does Huobi Chain differentiate?
A: Focus on compliance via Nervos’ Muta SDK.
Final Notes
This report reflects Multicoin’s analysis only. For disclosures, visit Multicoin Capital.