Huobi continues to grow its token listing platform, having just completed the fifth successful launch. Huobi Prime conducted a token sale for EMOGI (LOL), with more than 13,000 users participating in two rapid-fire trading rounds. This listing follows on from four previous project launches on Huobi Prime.
The LOL token sale opened on August 15. The first trading round operated on a “jackpot” basis, where traders competed to win one of 800 slots to trade over 290m LOL tokens. The second round was open to all eligible traders and hit its target of 1.176bn LOL tokens traded.
EMOGI is a proof-of-stake blockchain which operates a secure, low-fee social digital currency. The platform was developed by a team which already has two successful products called Bermi, and Berminal. Bermi is a short video sharing platform, and Berminal is a blockchain news sharing platform.
The use case for the LOL token is in rewarding users who create content and engage with the Bermi and Berminal communities. The project is proving a hit in Latin America, where over 70 percent of its users are based. Now, thanks to a successful “selective token listing” on Huobi Prime, the LOL token received a massive injection of liquidity on the Huobi exchange.
Fifth Successful Launch
Huobi Prime launched in late March and has been hosting around one token launch per month since then. The sale of cloud communication services platform TOP was the inaugural event and a runaway success with 3,764 users buying 1.5 billion tokens.
Because around 130,000 users had attempted to participate in the TOP sale, Huobi Prime had to rethink its eligibility criteria for the second sale of Project Newton (NEW) tokens. The community economy project drew in a 500% price increase as a result of the listing, with 17k participants this time around.
The NEW sale was followed by two more sell-out token offerings, of Reserve (RSR) in late May, and Akropolis (AKRO) in early July. Although there is currently no news of any further upcoming launches, it seems inevitable that Huobi will want to capitalize on its users’ appetite for more.
Whereas many exchanges now offer an IEO platform to blockchain startups, Huobi’s operates slightly differently from its counterparts. When a token is listed with Huobi Prime, rather than being sold at a fixed price, Huobi lists them for direct market trading.
This is a savvy move designed to attract early investors who can get the token at the lowest possible price. However, it drives demand for the token, meaning the value has proven to shoot over the course of the sale.
Burgeoning IEO Market
At the start of 2019, many were talking of how this would be the “year of the STO.” Of course, we’re still only partway through 2019 with no concrete market analytics available. However, the current numbers appear to suggest that the IEO is now a more prevalent means of crowdfunding than the STO.
For a token founder, the IEO offers significant benefits. The project gets access to a pool of traders and can leverage the exchange’s reputation and marketing heft. Furthermore, it provides an immediate boost of liquidity for tokens that may otherwise struggle to attract traders.
The growth of Huobi Prime is reflective of the exchange’s efforts to expand its overall footprint in the crypto space. Recently, it announced it was launching BSV contracts for difference on its derivatives platform, and Huobi will also open a regulated crypto exchange in Thailand later this year.