Huobi Launching 1st Crypto Exchange That Uses EOS As Base Currency

Siamak Masnavi

On Saturday (29 December 2018), Huobi Group announced that Huobi Pool, the company's cryptocurrency mining subsidiary, will be launching in Q1 2019 a crypto exchange dedicated to EOS.

Huobi Group, which was established in 2013 and is backed by American venture capital firm Sequoia Capital, owns the world's third largest cryptocurrency exchange (by "adjusted" trade volume).

Its cryptocurrency (BTC and BCH) mining arm, Huobi Pool, offers a platform that is "connected to the trading platform, where miners' earnings can be withdrawn, and subsequently deposited and traded on the Huobi Exchange or Huobi OTC." On 25 September 2018, Huobi Pool "broke into the top 10 worldwide mining pools by hashrate distribution." It is thought that this increase in computing power was due to the launch of Huobi Pool Token (HPT), "the first sub-token created for the Huobi Token (HT) ecosystem," on 20 August 2018.

Huobi's press release says that Huobi Pool "has been working closely with the EOS community since the business's launch earlier this year." Amongst its list of achievements in 2018 are its collaboration "with other block producers to build an EOS test chain, the Crypto Kylin Testnet, where EOS-based projects can be tested." Also, it "developed a voting platform for EOS holders and set up an EOS community to make holders more aware of node elections."

Huobi's new cryptocurrency exchange, which will be launched within the next few months, will be using EOS as a base currency, allowing "users to trade EOS against a number of other cryptocurrencies."

Cao Fei, Huobi Pool's CEO, said:

"As an EOS super node, Huobi Pool has placed its ecological development high on its list of priorities. Launching this EOS exchange is simply the next logical step in our support."

Today's news comes a day after Huobi Global announced that Huobi's cryptocurrency derivatives exchange, Huobi Derivative Market ("Huobi DM"), had "expanded its contract trading services to include EOS."

"Inclusion on Huobi DM" allows "traders to take both long and short positions on EOS, allowing for arbitrage, speculation, and hedging." Huobi Global CEO Livio Weng had this to say about Huobi DM:

"Huobi DM can be a powerful tool in managing risk in EOS and other cryptocurrencies. That's an important factor when dealing with bear markets, such as the one we find ourselves in now."

At press time, according to CryptoCompare, EOS (the fifth most valuable cryptocurrency by market cap) is trading at $2.65, down 3.99% in the past 24-hour period.

Featured Image Courtesy of Block.one