By: Frank, Foresight News
In a fast-paced crypto industry, a decade is a significant timeline. For leading crypto exchange HTX (previously known as Huobi), the 10th anniversary is a special moment representing the successful culmination of its first decade-long journey. These past ten years have seen the crypto industry (particularly in China) experience both remarkable highs and challenging lows, mirroring HTX’s own journey filled with moments of glory and setbacks. The journey of HTX began its humble journey in 2013, growing and achieving the status of the largest exchange in the Chinese market in 2017. HTX exited Mainland China in 2021 and along the way achieved numerous significant milestones. This year, as another decade begins, how will HTX embark on its next decade-long plan?
From Huobi to HTX: A New Chapter Starting with “X”
In algebra, the letter “X” is often used to represent something unknown with limitless possibilities.
For Elon Musk, the element “X” plays a significant role in his companies, from xAI to SpaceX. After acquiring the popular social media platform Twitter, he rebranded it under the name “X”.
After nearly a year under the new ownership, HTX has successfully integrated ‘X’ into its revamped brand strategy, signaling the start of a new global chapter. This rebranding introduces a new corporate slogan: “HTX, Just Trade It.”
● Spoken to HTX’s spokesperson, “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
● From a different perspective, ‘HT’ also represents the native platform token on the exchange (Huobi Token), so the name ‘HTX’ can also be understood as the exchange for trading HT.
Being a well-known exchange in the industry, HTX is undoubtedly a valuable asset that has withstood the test of time. So what considerations prompted HTX to revamp its branding?
HTX has been a leader among the Chinese crypto exchanges. However, with changes in the overall environment and its withdrawal from Mainland China, HTX’s market share and competitiveness have seen stale growth. While distractions in the evolving competitive landscape led to HTX’s decline:
The rise of DeFi, Layer2, and other exchanges created greater competition. This escalated market globalization and decentralization. To keep up with the rapidly changing environment, the transformation and upgrade of HTX is inevitable.
This broader context is the driving force behind HTX’s rebranding, especially considering the following two timelines:
● In September 2013, HTX was officially established. Over a decade, HTX experienced significant transformations, from dominating the global Bitcoin trading market share to setting up offshore companies.
● In October 2022, HTX underwent a change in ownership, with significant developments such as the introduction ofJustin Sun in an advisory role, organizational and personnel adjustments, and the application for a Hong Kong VASP license within that same year.
HTX has spent a year in adaptation, which involved several months dedicated to restructuring, cost reduction, and efficiency enhancement. As a result, HTX now finds itself on a more stable footing, and in prime condition for the exchange to initiate this brand upgrade:
The recent internal adjustments also provided the exchange with the opportunity to begin a new chapter of strategic planning for the next decade.
HTX Embarks on a New Global Growth Journey
Global expansion has long been the goal of HTX.
With this rebranding, HTX is once again embarking on a journey of globalization, with HTX as its global brand.
The exchange’s strategic plan covers two main areas: expanding its global reach and diversifying its product offerings, in an effort to achieve global expansion in a coordinated manner.
Ramp up Global Compliance Step by Step
HTX’s Dominica market marks the beginning of the exchange’s journey in global expansion. Its main goal is to achieve decentralization while focusing on key regions, exploring potential markets, achieving balanced growth in different countries, and strategically expanding its global business footprint.
In other words, its goal is to reduce their dependence on a single country or region. Instead, HTX will continuously explore new markets such as the partnership with Dominica. The exchange will venture into new markets with promising prospects across various countries and regions.
This approach demands keen intuition and swift action. On this note, Hong Kong stands out as one of the best examples of this strategy. Just as the West cannot afford to overlook Jerusalem, today’s cryptocurrency markets and projects cannot ignore the potential influence of Hong Kong.
This year, HTX finds its compliance path crossing with Hong Kong. In April, HTX Night was held during Hong Kong Web3 Carnival, attracting Justin Sun’s appearance in “Asia’s World City.” Subsequently, Hong Kong witnessed the establishment of the pioneering crypto rating agency HKVAC in late May, with HTX proudly serving as its first exchange member. Moreover, the region’s new licensing regime came into effect on June 1. Embracing the regulatory landscape, HTX applied for a Hong Kong VASP (Virtual Asset Service Provider) license. Concurrently, HTX HK made its debut, inviting registrations from residents in the area.
Apart from Hong Kong, HTX is currently advancing compliance efforts in other countries and regions, including Gibraltar, Lithuania, Dubai, BVI, Australia, and more, applying for licenses and building compliance stations. Furthermore, in June 2023, HTX’s Mars Program set its sights on the vast space, aiming to challenge the boundaries of cryptocurrency adoption.
The narrative in the blockchain industry has always been about providing banking services to those regions lacking banking and financial infrastructure. HTX’s strategic initiatives span across Asia, Europe, Africa, and even Oceania, aligning with the strong demand for cryptocurrencies in emerging markets. This expansion also serves as a crucial lever for HTX to compete for market share and expand its cryptocurrency financial services.
As the volume and influence of the crypto market continue to rise, it becomes clear that embracing regulation and practicing compliance are essential for the overall growth of both the crypto industry and the exchange sector. HTX’s commitment to regulatory compliance is its lifeline, highlighting its dedication to achieving balanced growth and establishing a global presence in the crypto space.
Forge a “Crypto Super Ecosystem”
Competition in the crypto exchange sector has always been fierce, particularly in today’s saturated market. To attract and retain users, exchanges must look beyond the core function of trading and offer something more.
HTX is in the process of reshaping its product portfolio ahead of the market trends, recognizing the need to diversify products and services beyond geographical expansion.
HTX aspires to be the driving force behind the creation of the ultimate cryptocurrency ecosystem, akin to Elon Musk’s ambitions for the social media platform X (formerly known as Twitter)
HTX envisions a super ecosystem that aims to introduce top-quality assets into the cryptocurrency realm and provide an all-encompassing platform including spot trading, derivatives trading, wealth management, and asset management. The goal is to enable users to trade, discover, and invest in selected crypto assets while delivering professional services and diversified products to a global user base.
What sets HTX apart is its distinctive narrative style and competitive edge,perfectly resonating with the TRON blockchain, which hosts billions of USDT and a massive user base. This synergy brings together the combination of exchange, public blockchain, and stablecoin, resulting in a “1+1>2” effect.
This strategic approach addresses a core business model that many other exchanges, such as Binance, are emphasizing but have yet to fully develop. It involves integrating real-world assets with genuine use cases into the cryptocurrency space, bridging the gap between high-quality assets and exchange users worldwide.
One notable example of HTX’s commitment to this vision is its strong support for TRON’s Real World Asset (RWA) token, stUSDT. Through collaboration with Justlend DAO, HTX facilitates stUSDT staking services, an initiative that integrates real-world assets into the DeFi sector, offering pluralistic, profitable channels to ordinary users and bridging the divide of investment targets between individuals and institutions.
HTX will continue to introduce a wide range of promotions and products related to asset operations. On one hand, it plans to consistently refine its flagship product lineup, featuring PrimeVote and Flexi Max. On the other hand, it intends to unveil more new offerings, similar to the recently launched Shark Fin, as well as an asset custody product that was developed in partnership with Fireblocks. In doing so, HTX aims to furnish users with secure and diverse options for safeguarding and maximizing the value of their cryptocurrency assets.
HTX closely monitors market trends and strategically diversifies its operations into new sectors, aiming to discover sustainable wealth opportunities that are accessible to a broader range of users.
● HTX will deepen collaborations with mainstream ecosystems, including (but not limited to) public chains, Layer 2, and meme coins.
● Furthermore, HTX pays close attention to developments in emerging sectors. It actively collaborates with high-quality project teams to ensure prompt listing of new digital assets on the platform, to meet users’ needs for both spot and futures trading.
For instance, HTX was among the first movers to list popular assets such as PEPE and AIDOGE during the meme coin hype this April, which played a significant role in injecting vitality into the lackluster market during this period.. Moreover, HTX has established strategic partnerships with world-renowned service providers, public chains, and project teams, including TradingView, Polygon, and UniSat Wallet, to collaboratively build a multi-dimensional business ecosystem and enhance the user experience.
In addition, lucky users from the HTX Mars Program during HTX’s 10th anniversary celebrations enjoyed a multitude of prizes. The prize package includes a chance to compete with shortlisted space candidates for a coveted $6 million space flight ticket, a round trip experience on a Gulfstream private jet, and the latest Tesla Model 3 (distributed in the form of 20,000 USDT and 20,000 USDT in future trial bonuses). HTX aims to attract more users and bring them into the cryptocurrency realm by offering a variety of campaigns with similarlyappealing rewards.
To reiterate, while HTX concentrates on the mainstream crypto ecosystem to meet users’ trading demands, it is also exploring emerging sectors to uncover more wealth opportunities accessible to users. This not only fulfills the essential needs of users in the current crypto market but also aligns with its vision after rebranding: “Achieving Financial Freedom for 8 Billion People on Earth”.
What Does the Future Hold for the Development of Exchanges?
“People tend to overestimate short-term impacts while overlooking long-term trends”. Every turning point and revolution in the blockchain industry, from Uniswap to Cryptokitties, can be identified by subtle yet discernible clues and indications long before they actually occur. Many seemingly unremarkable new technologies or trends today have the potential to reshape the entire industry in the future.
In the realm of cryptocurrency exchanges, it has been just under a year since the sudden collapse of FTX in early November 2022. The entire crypto industry and exchange landscape have now transitioned into the “post-FTX era”.
The most significant change is that leading platforms such as Binance, OKX, HTX, and various other small and medium-sized exchanges have successively introduced reserve asset proofs, further advancing the development of asset security within exchanges. Most notably, HTX updated its Merkle tree Proof of Reserves in September, maintaining reserves that consistently exceed 100% to ensure the security of user funds.
The crypto business is still in the early stages of the adoption curve, as indicated by a Boston Consulting Group (BCG) report. However, projections indicate that by 2030, the total number of cryptocurrency users will reach an impressive one billion. The report estimates that the top five exchanges will account for 65-75% of global spot trading volume and 80-90% of the futures trading volume.
In short, centralized exchanges (CEX) are expected to maintain their pivotal position in the cryptocurrency market in the near future. However, as the industry moves into the “post-FTX era”, the dominance of a single exchange has reached the peak within the exchange landscape the era of a single dominant exchange appears to have peaked within the exchange landscape. This becomes apparent when examining industry developments and the growing recognition of the importance of risk diversification.
Therefore, with the rapid expansion of CEX, the industry’s future may be characterized by a landscape of “one superpower, multiple strong players.” Undoubtedly, the scope of competition among exchanges will continue to broaden.
Against this backdrop, regulatory compliance and product innovation are set to assume a growing importance in the competition among exchanges, mirroring the development path of Binance, which initially faced setbacks but later rose to prominence. Regulatory compliance and product innovation will become the primary drivers of competitive advantage. While this trend may be less pronounced at present, its influence is destined to increase over time.
“There is the potential to breathe new life into old things through innovation and change.” As old Huobi marks its 10th anniversary, the year-long restructuring of the new HTX is finally nearing completion. As these two timelines converge, the demarcation between the old and the new becomes less distinct. However, one fact remains evident: the new timeline heralds a new chapter for HTX.
With the rebranding to HTX as its new identity, the exchange will strategically push for globalization, actively promote regulatory compliance and product innovation, and embark on its ambitious plan for the next decade.