Pass card Institute: early fire coin new strategy, HT prospects or period

 Pass card Institute: early fire coin new strategy, HT prospects or period

Introduction

In 2018 Huobi trading business layout gradually improve, expand to the spot by spot + contract + overseas local station +Huobi cloud, but also the rapid expansion of large-scale Huobi faces many challenges.

abstract

Business: multi point force, the early new strategic effect.

At present, Huobi trading business layout has been perfected, four components were: Huobi (Global, OTC passes trading transactions and leveraged transactions), Huobi DM (contracts), currency trading overseas support local station (currency transactions) and Huobi Cloud (Huobi cloud).

According to our estimates, the 2018 Huobi Global net profit of about $216 million, deducted for repurchase part HT for about $173 million, corresponding to HT PE were approximately 4.2 times and 5.2 times. The first half of the overall downward trading volume in 2018, sluggish industry, Huobi Global turnover is relatively more stable.

Huobi contract opened a new profit point, 20% repurchase contract revenue to destroy HT. Huobi DM on the line since the trading volume continued to grow, and bring new profit growth point for Huobi users. According to the non small data, March 16, 2019, Huobi Global and Huobi DM 24 hour trading volume reached US $1 billion 279 million, ranked first in the world. In addition Huobi contract 20% of revenue will be used to repurchase and destroy HT, provide further support for the price of HT.

In 2018, Huobi made a significant breakthrough in the transaction currency to support overseas local station, is now in the United States, Europe, Japan, South Korea, Australia and other major trading countries made through legal tender license compliance licence or established local compliance operations team.

The launch of Huobi and Huobi EOS exchange Huobi exchange to further improve the ecological, the future is expected to become the new performance of the outbreak point.

Other business: the rapid expansion of opportunities and challenges.

In addition to trading business, 2018 Huobi other business is rapidly expanding. The rapid spread of ecological territory indeed provides more opportunities for the Huobi, but in the overall market downturn, such a large bull in the market has also led to concerns. The current transaction card industry competition has not ended, on the one hand, industry concentration continues to decline, on the other hand, exchange trading volume ranking changes, in this case, the early has accumulated a certain advantage in the trading business Huobi, properly focused to industry may be a better choice.

Risk warning: part of the business progress than expected

Catalog

1 Huobi overview

2 trading business: multi point force, the early new strategic effect

2.1 HT: support to further enhance the repurchase

2.2 Huobi Global: the bear market turnover is relatively stable

2.3 Huobi DM: open a new profit growth point

2.4 support Huobi trading station: Overseas local currency globalization layout is progressing smoothly

2.5 Huobi, Huobi EOS cloud: continuous improvement of ecological exchange

3 other business: the rapid expansion of opportunities and challenges

Conclusion 4

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Overview of 1Huobi

Huobi group was founded in 2013, to get it real fund and Sequoia Capital Investment in November 2013 and April 2014 respectively, has become the world’s largest digital asset trading platform. After years of development and continuous layout, the Huobi group’s business has been extended to the digital asset trading in many fields including mine pool, wallet, investment, social, information, research, education, ecological incubators, personnel services, legal services, etc..

 Pass card Institute: early fire coin new strategy, HT prospects or period

2 trading business: multi point force, the early new strategic effect

Business layout perfect. Huobi trading business is composed of four parts, covering all aspects of digital asset transactions, respectively: Huobi (Global, OTC passes trading transactions and leveraged transactions), Huobi DM (contracts), currency trading overseas support local station (currency transactions) and Huobi Cloud (Huobi cloud).

Huobi Global after years of development has been relatively mature, Huobi DM contracts since the on-line trading volume of steady growth, March 16, 2019, Huobi Global and Huobi DM 24 hour trading volume reached US $1 billion 279 million, ranked first in the world (source: non small), support to overseas local currency exchange station, Huobi and EOS is expected to become the next new growth point.

 Pass card Institute: early fire coin new strategy, HT prospects or period

2.1 HT: support to further enhance the repurchase

Huobi, Binance, OKEx three trading platform launched its own platform through HT, BNB and OKB certificate, and the implementation of the repurchase or profit return plan, so according to the platform or profit return to repurchase the estimated income profit platform.

Binance will be a quarterly profit of 20% for repurchase and destruction of BNB, the upper limit of 1 million. Regular repurchase guarantee BNB deflation destroyed, in addition BNB can be used to pay transaction fees and enjoy a discount.

OKEx weekly return 50% fee to the holder of the OKB and continued for two years. The return way according to the user’s OKB holdings accounted for more than 7 days of continuous distribution, holding 10000OKB to obtain the corresponding BTC super encourage gold, OKB fees return weekly, OKB circulation to achieve the purpose of price support passes through the lock holder to encourage OKB.

Huobi Global will be a quarterly income (rather than fee income or profits) 20% for repo HT. 2018 before the two repo HT has been credited to the investor protection fund of suocang, after two of the repurchase HT included investors win fund and the HT holders were dropped.

HT repurchase program to repurchase by the community vote and destroy HT. 11 2018 at the end of the year, Huobi Global launched a HT buyback community vote, finally chose to “destroy” the scheme of votes ratio is 80.99%, 2019 years repo HT will be destroyed. After the repurchase way to destruction can directly reduce the total supply amount of HT, support for HT price will be more obvious.

In 2019 Huobi DM Huobi DM on the line, the quarterly revenue of 20% will be used to repurchase and destroy the HT, to provide further protection for the value of HT. In addition to the application scenario of HT has been relatively rich, with the continued development of the Huobi ecosystem, HT applications will continue to expand.

 Pass card Institute: early fire coin new strategy, HT prospects or period

Huobi Global 2018 revenue of about $503 million. According to the Huobi Global announcement, used to repurchase HT income equivalent to USDT are in the quarter of the last day’s closing price, a quarter of 2018 to Huobi Global revenues were approximately $133 million (of which passes the listed revenue of about $50 million 880 thousand), $197 million, $119 million and $54 million 100 thousand, total annual income includes income and market passes fee income, about $503 million, thus Huobi founder Li Lin said “fee income exceeded 500 million U.S. dollars” or “total revenue exceeded $500 million in the open letter”.

 Pass card Institute: early fire coin new strategy, HT prospects or period

Note: the first quarter of 2018, Huobi Global will all vote by the listed securities investor protection fund credited to income.

According to our estimates, 2018 Huobi Global net profit of about 2.16 billion dollars, deducted for repurchase part HT is about 1.73 million, corresponding to HT PE are about 4.2 times and 5.2 times. The traditional exchange rate of net profit at about 25%-55% (2017 years ago 9 exchange group net profit average rate is about 43%), according to the net profit rate of 43% calculation, Huobi Global 2018 year net profit of about 2.16 billion dollars, deducted for repurchase part HT is about 1.73 billion dollars, the current month (3 2019 13 day) HT total market capitalization of about 9.05 billion, corresponding to HT PE are about 4.2 times and 5.2 times, far below the average of 28.6 times the valuation of traditional exchanges, this is because there are some differences between the rights and interests of property and stock certificate platform, on the other hand is 2018 years passes the secondary market turnover atrophy, leading investors unwilling to give the platform passes high valuation, but in the long run, block chain and passes the development of exchange is still worth bullish.

2.2 Huobi Global: the bear market turnover is relatively stable

Overall, the 2018 Huobi transactions up to achieve the high growth, but by the second half of 2018 the market downturn and the volume of the three or four quarter of 2018, Huobi trading volume and the performance also failed from falling.

Despite a significant decline in revenue, but Huobi Global transactions in the market upward during a higher growth rate during the bear market is relatively more stable.

2.3 Huobi DM: open a new profit growth point

Huobi contract opened a new profit point, contract income of 20% to buy back the destruction of HT. At the end of November 2018 December 10, 2018, Huobi launched the derivatives market, Huobi officially launched DM, regular contracts are currently on-line varieties including BTC, ETH, EOS and LTC. The Huobi DM line to further improve the Huobi exchange ecology, but also brought new users and profit growth point for Huobi, in addition Huobi contract 20% of revenue will be used to repurchase and destroy HT, provide further support for the price of HT.

Huobi DM on the line since the trading volume continued to grow in 2019 1-3 month increased by 7.6%, 9.3% and 18.4%, as of March 13, 2019, Huobi DM total turnover reached $56 billion.

 Pass card Institute: early fire coin new strategy, HT prospects or period Pass card Institute: early fire coin new strategy, HT prospects or period

Note: the volume of OKEx including OKEx and OKCoin.

2.4 support Huobi trading station: Overseas local currency globalization layout is progressing smoothly

According to CryptoCompare data, the BTC and ETH currency trading mainly in dollars, euros, yen and the won (total trading volume more than four yuan accounted for the total transaction amount of BTC and ETH in 17% and 7%, without considering the USDT and BTC as payment under the condition that the total trading volume of more than four yuan respectively. BTC and ETH trading volume 77% and 50%).

 Pass card Institute: early fire coin new strategy, HT prospects or period Pass card Institute: early fire coin new strategy, HT prospects or period

In 2018, Huobi made a significant breakthrough in the transaction currency to support overseas local station, is now in the United States, Europe, Japan, South Korea, Australia and other major trading countries made through legal tender license compliance licence or established local compliance operations team.

(1): the United States exclusive partner HBUS has made many type of licence

HBUS is headquartered in San Francisco, has made the United States MSB (Money Services Business, currency service) licence and Vermont MTL (Money Transmitter Licensing, funds transfer license) license.

(2): Gibraltar DLT license in Europe

(3): Japan’s wholly owned licensed exchange BitTrade

2018 years 9 months Huobi to buy a Japanese licensed virtual card exchange through “BitTrade (virtual currency exchange industry Kanto financial secretary in 00007)”.

(4): South Korea Huobi Korea local operation

Huobi Korea headquarters is located in Seoul, the operation mode of South Korean website localization, supporting the Korean customer help system, provide the won against the digital asset trading services.

(5): Australia and BlockchainGlobal co founded Huobi Australia

Huobi Huobi and Blockchain Global Australia cooperation exchange, subject to the supervision of the Australian government agency AUSTRAC.

In addition, according to the Huobi Global website, the formation of Huobi has been completed in Japan and South Korea, Singapore, Australia, Canada, Britain, Brazil, Hongkong and other countries and regions of compliance services team.

Japan and South Korea Australia experience for Huobi days after the currency trading business foreshadowed. 2018, the world passes tighter regulation, will speed up the compliance process put forward a new challenge to the existing trading platform through the card, but also brings the opportunity for the development of compliance. To obtain a licence to trade in the main countries through trading and related legal tender card business in addition to increase Huobi’s users and source of income, but also bring valuable experience related to Huobi, is of great significance for the future development of digital assets in other countries currency trading market.

2.5 Huobi, Huobi EOS cloud: continuous improvement of ecological exchange

Huobi cloud is a digital asset exchange Huobi launched a one-stop solution for digital asset exchange support partners to quickly build a safe and stable. According to Huobi founder Li Lin said in an open letter to the staff, Huobi cloud partner has exceeded 100, daily trading volume has exceeded $30 million. The launch of Huobi Huobi cloud is conducive to business growth in traffic, to further improve the Huobi trading business layout, the future is expected to become the new performance of the outbreak point.

Pool Huobi launched by Huobi EOS exchange 1 2019 year trial operation on the line, EOS is committed to providing digital asset trading services convenient, the Huobi EOS passes between OTC and provide trading transactions and leveraged transaction service. Huobi EOS exchange hand is conducive to enhancing the business flow of Huobi, on the other hand, will also be with the Huobi mine pool business interaction.

3 other business: the rapid expansion of opportunities and challenges

In addition to trading business, 2018 Huobi other business is rapidly expanding, including mine pool, wallet, investment, social, information, research, education, ecological incubators, personnel services, legal services etc..

The rapid spread of ecological territory indeed provides more opportunities for the Huobi, but in the overall market downturn, trading volume low, trading revenue decline, such a large bull in the market has also led to concerns. Since the second half of 2018, the negative news about Huobi spread, including income decline, personnel flow, internal management problems, etc.. At the beginning of 2019, Huobi founder Li Lin in full open letter said the Huobi strategy is not focused, behind the business management.

Conclusion 4

Huobi trading business product line layout has been initially completed, passes between the comprehensive coverage of trading, leveraged transaction, OTC transaction, contract transaction and currency trading. In 2018, the overall market downturn, Huobi Global turnover remained relatively stable; Huobi DM after the line to achieve a steady growth, provides a new profit growth point for Huobi; overseas local station layout results support transactions currency significantly, passes currency trading in the United States, Japan, South Korea and other countries landing; Huobi and EOS exchange in the future is expected to become the new performance of the outbreak point.

The rapid expansion of the 2018 Huobi business layout brings great challenges to Huobi, suitable for the better choice or trading business focus. The rapid expansion has brought increased cost and management pressure, but also to the Huobi has brought new opportunities. The current transaction card industry competition has not ended, on the one hand, industry concentration continues to decline, on the other hand, exchange trading volume ranking changes, in this case, the early has accumulated a certain advantage in the trading business of Huobi, the appropriate focus to business may be Huobi better choice, too or will become a new growth point in the future HT.

Note appended:

For some reason, some nouns in this paper label is not very accurate, such as: digital certificate, digital certificate, through currency, token, Crowdsale, currency, readers can contact us if you have any questions, to discuss.

 Pass card Institute: early fire coin new strategy, HT prospects or period

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