Huobi Prime – The Beginner’s Guide: How To Invest In Token Sales. Naturally, Initial Exchange Offerings (IEO) are catching up. After Binance’s Launchpad platform’s popularity, several exchanges have launched various solutions. Same for Huobi Global. Huobi Prime, Huobi’s exclusive token listing platform, aims to differentiate itself from Binance Launchpad and other options.
Huobi Prime lists tokens for direct market trading instead of issuing them at a price. The newly listed tokens can only be traded against Huobi’s native cryptocurrency, the Huobi Token. Each of the three trading rounds caps its maximum price to decrease volatility and investor risk. The exchange immediately registers the new token for unlimited and regular trade on its traditional cryptocurrency exchange after three rounds of limited trading.
The platform conducted one selective token listing. It was for the TOP Network project. Three rounds were completed in under 20 seconds, selling 1,500,000,000,000 TOP tokens. The procedure is simple, but you must understand it to compete in the high-demand buying race. Let us guide you through Huobi Prime’s “Selective Token Listing” process.
Huobi Prime Selective Token Listing Preparation
You are required to verify your eligibility before every event. Because Huobi Prime wants to give preference to people who already own HT, one of its requirements is that a person must have held an average of 500 HT every day for the 30 days preceding the Huobi Prime trading session. On the other hand, they have made it abundantly apparent that this could change depending on how the price of HT moves. Any updates will be communicated when they become available. Huobi said the restriction will be set at 1000 HT to prevent whale behavior. Naturally, the Know Your Customer (KYC) rules that are in place for Huobi’s standard Bitcoin exchange are also in place for Huobi Prime.
Be Prepared! As mentioned, the first Selective Token Sale of TOP Network was successfully concluded in fewer than 20 seconds. You will need to move quite quickly! On the particular day of the sale, all you need to do to participate is sign in to your Huobi account and click the “Exchange” option, which is located at the very top of the navigation menu.
What Are Price Limit Rounds?
Huobi has a different approach than Binance Launchpad and the majority of other initial coin offering (IEO) platforms, as was noted earlier. The platform implemented the so-called “Price Limit” rounds as part of an effort to encourage “fair” price discovery and to protect investors from the hazards that severe volatility poses to their investments. There exist three phases of this nature, with each iteration having a precise duration of 20 minutes. Following the conclusion of each round, there is a clearance period that lasts for ten minutes, during which Huobi distributes the tokens by market orders.
It is essential to be aware that during these rounds, users can only trade against HT and can only place ordinary market spot orders. This information is critical. As a consequence of this, you won’t be able to utilize limit orders until all three rounds have been completed. In addition, the highest marketable price of each following game will not be lower than before. This is the primary means by which users can make a profit from the system.
Trading During Price Limit Rounds
As previously said, the entire procedure is notably streamlined. During the three Price Limit rounds, participants must input their market spot orders, specifying the desired quantity of tokens to be purchased. To initiate a purchase of tickets, users must input their desired amount and proceed by selecting the “BUY” button. Percentage indicators can also be utilized to simplify the process further. The statement above also applies to the act of selling. To initiate a sale, please enter the desired quantity for sale and proceed by selecting the “SELL” option.
Irrespective of the user’s selection, once activating the corresponding button, they must undergo a prompt slide authentication process. By following these instructions, your order will undergo the necessary processing procedures. Subsequently, it is required to await the conclusion of the round, during which Huobi will proceed to settle the order, manifesting the alterations in your balance sheet. That encompasses the entirety of the subject matter. Once the process above is completed, it is advisable to await the conclusion of the three rounds patiently. Subsequently, one may commence trading the newly acquired tokens on Huobi Global without any restrictions, similar to the trading of other supported assets.
Pros and Cons of Huobi Prime
- Highly streamlined way to participate
- There is no waiting time to start buying.
- profitable plan that helps early participants
- Getting access to prices below market
- Lots of people want to buy tokens, which makes it hard to do so.
- It takes longer to buy tokens because of the slide-proof captcha.
- Need for an average daily holding of at least 500 HT
In general, Huobi Prime makes it easy to get new tokens and creates a business plan that makes early investors money. Another thing that should be mentioned is that TOP Network’s first selective coin listing had many technical problems. A lot of users weren’t able to participate because the platform couldn’t handle the demand. If Huobi Prime can figure out how to handle the enormous request, it could become a great tool that helps investors and projects that need money in many ways.