Huobi Global, one of the world’s largest crypto exchanges, burned over $35 million worth of its tokens in August, the company announced Friday. The increase indicates strong revenue growth for the month.
- The exchange’s token burn last month was 55% more than in July.
- Burn total is positively correlated to revenue so a rise in token burn indicates revenue growth. Token burning is a process where crypto coins are removed from circulation to keep inflation low.
- Huobi told CoinDesk it burns 15% of its revenue and allocates 5% of total income to repurchase and burn a portion of its Team Incentive Rewards.
- The company rebounded from burning just $22.3 million of its Huobi token in July, a 54% decrease from its total burn volume in June.
- Jeff Mei, director of global strategy for Huobi Global, expects that the crypto market “will continue to thaw in the next few months,” and that the company will continue to see a steady rise in its burn volume, he said in a press release.
- The exchange plans on increasing its revenue with a series of incentive programs and PrimePool events, which encourage staking assets on the platform. Huobi recently launched its Futures Masters Contest on Sept. 2, which offered a $120,000 prize pool.
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