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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?

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.

8:51 AM · Aug 15, 2021Twitter Web App

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.)

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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: