Valuing Huobi Token

Below, we walk through a potential valuation for HT using publicly available information and comparing its valuations to other exchange tokens. Subscribers can access the spreadsheet and edit with their own assumptions. We place all the sources of information in the notes within each cell.

Please see the end of the article for the spreadsheet link.

Company Overview

Huobi is one of the world’s largest cryptocurrency conglomerates, focused on China and other Asian markets. Huobi, which means cryptocurrency in Chinese, was founded in 2013. Over the years, it has thrived despite a series of government crackdowns -- to become one of the most liquid and most dominant crypto exchanges in the globe. Today, Huobi Global is the second highest in termsof spot volume (excluding OTC trading).

The parent company Huobi Group, which was co-founded by Leon Li and Jun Du in early 2013, quickly became China’s largest exchange by end of that same year. Jun Du, is also the CEO of Node Capital and Jinse Finance, one of China’s most established crypto media platforms.

As shown in the chart below, Huobi benefited from the collapse of Mt Gox, which had up to70% of global Bitcoin trading volume. After Mt Gox collapsed, Huobi claimed to have a majority of global Bitcoin trading volume and is still one of the most liquid exchanges in the world today.