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Crypto Exchange: Huobi

Overall Rating: 90 / 100
Trade Volume Ranking: 2
Type: Spot, Margin, Futures, Fiat, OTC
Founded: 2013
Headquaters: Singapore
Official Site: Visit Huobi Exchange
Co-founders: Leon Li (LinkedIn), Jun Du
Investors: ZhenFund, Sequoia
Info: Blog
Advantages: ♦ No.2 crypto exchange in the world (ranked by trading volume)

♦ 6 years of experience in digital asset services

♦ Full range of services including spot and derivatives trading, crypto wealth management, crypto wallet, mining pools, OTC, etc.

♦ Strict compliance with local AML, FATF laws and more regulatory standards

♦ Dedicated 20,000 BTC Security Reserve Fund for asset loss due to technical problem or hackers

♦ No crypto asset stolen since 2013

♦ Cover all clients (webs, iOS/Android apps, Windows / Mac client) and allow API trading

♦ 5X leverage for spot trading

♦ Actively involved in many government blockchain projects

♦ Launched HT tokens which can reduce transaction fee and let holders grow with the platform

♦ Launched HB10 index for new users to diversify risks and capture long-term crypto trends

♦ Support 12 languages

— History —

In September 2013, Leon Li founded Huobi as a Bitcoin trading company. He had acquired the Huobi .com domain in May the same year, as part of his plans to launch this platform in China.

In November 2013, the company received angel investment from Zhen Fund and Dai Zhikang which served as the company’s initial capital.

By December 2013, Huobi was the largest cryptocurrency trading platform with a trading volume of over 30 billion Yuan.

In 2014, Sequoia Capital injected $10 million into Huobi as venture capital. This investment propelled Huobi’s rapid growth as a digital asset trading platform.

In August 2014, the company acquired Quick Wallet, a Bitcoin Wallet provider, and had increased its turnover to about $ 4 billion.

In September 2014, there was a mix up at Huobi in which 8.100 Litecoin and 920 bitcoin were deposited erroneously into different accounts. The company corrected this error and in November the same year, it established a system reserve fund to mitigate future losses arising from erroneous transactions.

In April 2015, Huobi undertook joint digital asset research with Tsinghua University at the Internet Finance Laboratory at the University’s School of Finance.

In July 2016, the company, through the Huobi Network Blockchain Research Centre, published its research paper titled ‘Blockchain: Defining a New Financial and Economic Future.

In November 2016, the company also joined the Fintech Digital Asset Alliance, positioning it as a vital partner in digital assets research in China.

In August 2017, Huobi was involved in a controversial investment of client idle funds totaling to about $150 million. Huobi had collaborated with OKCoin to make this investment into what the company called wealth management products.

In September 2017, Huobi suffered a big blow when China banned trading in cryptocurrency and Initial Coin Offerings (ICO) on domestic exchanges. This was followed by a quick decision by the company to explore other global markets as it could no longer operate in China.

In October 2017, Huobi’s first office outside of China was opened in Korea, and the second was opened in Singapore in November the same year, becoming Huobi’s headquarters to date.

In just one month, Huobi trading volume in Singapore exceeded 30 billion RMB, which encouraged the company to expand further to Japan in December the same year.

In March 2018, Huobi made entry into the USA digital assets trading market but had to suspend operations in July the same year as the market proved non-profitable. However, the company continues to trade in HBUS, a US Dollar-backed stablecoin that the company created.

In July 2018, the company launched Huobi Cloud, a platform that was to give digital asset trading platforms a one-stop-solution.

On November 28, 2018, Huobi Derivatives Market (DM) was launched.

In September 2019, a rumor circulated that Huobi was partnering with a Chinese Smartphone manufacturer to make Smartphones that would be enabled to trade in digital assets. However, Huobi management dispelled this rumor with an incredulous Twitter post.

On March 30, 2020, Huobi initiated trading in perpetual swaps, and on July 15, 2020, the company announced it was introducing bi-quarterly futures contracts, with the first one set to expire on December 25, 2020.

In August 2020, Huobi launched Huobi DeFi Labs, an initiative that it hopes will incubate research development projects for DeFi. Huobi hopes to inject several million dollars into this DeFi Labs incubation program.

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