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#Huobi Completes July $HT Burn!

22.591 million USDT has been burned

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2) Huobi burned 2.3m HT ~ $22.6m for the month of July. What does that mean?

8:51 AM · Aug 15, 2021Twitter Web App

3) Well, Huobi claims to burn 20% of its revenue. (This is a little complicated -- they buy/burn 15%, and then they buy/burn 5% from something that looks kinda like the team allocation: huobi.com/support/en-us/) So that means they're claiming about $110m revenue in July 2021.

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4) Our data has Huobi doing about $750B of volume in July (roughly $25B/day). $110m revenue / $750B volume --> 0.015% take rate, which roughly lines up with other large exchanges whose volume is primarily futures. (This doesn't say anything about expenses, mind you.)

5) What does this imply for HT? Well, it has a circulating market cap of $2.2B and a fully diluted cap of $2.9B (excluding already burnt tokens). It's burning about $250m/year, so HT is trading at roughly 10-years burn at this rate. (How long will Huobi keep burning? IDK!)

6) That's on the low end of multiples as far as exchange tokens go. Either it's a great buy (relative to others), or the market is pricing in future declines in relative volume. FWIW, here's Huobi's % of market volume for the past few years: