China-based cryptocurrency exchange service Huobi is launching its very own exchange token, aptly dubbed the Huobi Token, that is designed to allow streamlined use of the exchange while also offering discounts and incentives to users.
The primary utility of the Huobi token is to offer discounts on trading fees. Whereas cryptocurrency exchanges often charge trading fees in dollars or bitcoin, Huobi manages to reduce its fees by taking payment through the inbuilt Huobi exchange token. The tokens are being distributed to Huobi users who bought the service's discounted premium package using the tether cryptocurrency token. However, user purchases will be limited in order to prevent domination of the token market by a few big players.
Additionally, the Huobi token can also be utilized to purchase cryptocurrencies such as bitcoin or Ethereum, making it a literal cryptocurrency as well as discount token.