Parsing the value logic of BHEX platform token — BHT
The constant and up-to-date technological development of BHEX has provided it with a significant advantage over many companies with exchanges that rely solely on extreme marketing and coin listing. BHEX business has begun to take off with the aggressive BHT token buyback and token burn policy, and it has become the most talked-about digital currency in summer 2019.
Check BHEX official Telegram ：https://t.me/BHEX_EN
On August 12, 2019, BHEX completed its very first BHT buyback from ‘HT’s 50% Token Sale’. The volume purchased from the 50% Token Sale BHT buyback scheme will be burned. A total of 4628724.18 BHT has been burned through this 50% discount snap up campaign. BHEX has officially published an announcement on August 12, 2019, that an estimated 4.6 million BHT has been sent to a black hole and verifiable address to be burned. The burn has been completed and the BHT destroyed. and BHEX has also announced that For all 50% subscription campaigns, all participated BHT will be burnt until to 50% of the BHT total issuance.
The recent announcement of a large-scale BHT buyback, Listed Huobi Global exchange, token mechanism buybackscheme and the first-ever execution of BHT token burn brought surprises to many BHT holders.
Over-night, BHT has become the most talked about digital coin in the crypto space, stirring up great interest and making BHT the preferred cryptocurrency in the market.
BHEX is widely known only as a cryptocurrency exchange. In actual fact, BHEX is not just an exchange but a corporation consisting of 3 core businesses, mainly BHEX Chain, BHEX DeFi Market(BHDM) and BHEX Cloud. The corporation’s B2B enterprises are not made known to the consumer market.
After going in-depth of BHEX business model, we have come to a conclusion. “The value of BHT has far exceeded those cryptocurrencies that only depends on trading value. The development of BHEX is limitless.”
How to measure the value of BHT? How to determine the development prospects of BHEX? This paper attempts to analyze the future value of BHT from the perspective of BHT’s economic model, BHEX technological strength and business progress.
80% of its revenue is used to buyback BHT from secondary markets which can create deflation in the currency.
“BHT token buyback and token burn efforts have far exceeded the efforts of the top three cryptocurrency exchanges. BHEX’s business progress and technical strength are much stronger than many exchanges. ”
The recent Binance token buyback and token burn security incident has once again sparked the argument of deflation within the industry. It brought back the “token buyback and token burned” to a major discussion.
Today, the “token buyback and token burned” is the most recognizable economic model for an exchange platform tokens. The idea of sharing growth and benefits with token holders has brought interest and acceptance. The efforts of “token buyback and token burned” reflects the confidence of its development.
Revenues generated by the platform is plowed back as capital for used in the token buyback. Three of the major players; Huobi and Binance spend 20% of their total profits and OKEx spends 30% of their trading profits for the token buyback. Other exchanges like MXC and BIKI are more aggressive on the token buyback scheme, they utilize 100% of their trading revenue for the buyback scheme instead. BHEX has announced that 80% of the business revenues will be channeled back into the token buyback, quarterly until the circulation of BHT in the market is reduced to 50%
Our study shows that a majority of the exchanges uses only the revenue generated from transaction fees to buy back tokens under the token buyback scheme. BHEX on the other hand spends 80% of the total business revenue generated from BHEX exchange, BHEX Chain, BHEX DeFi Market and BHEX Cloud on the token buyback scheme.
The amount of token burned is one of the key factors in the “token buyback and token burned” scheme. According to the official announcement, Binance is expected to destroy 50% of the total BNB coins in circulation and OKEx 30% of the total OKB coins in circulation. Huobi and BIKI have not made any official announcements yet relating to the ‘ token buyback and token burn’ scheme. BHEX has pledged to burn 50% of the total volume of BHT coins in circulation, according to their official statement.
Regardless of the revenue spent or the percentage of coins burned in the token burn, the announced effort made by BHEX is far greater than that of the top three exchanges and also that of digital coins platforms that rely solely on trading revenues.
The value of BHT is backed by the performance of BHEX other business models using BHT in actual use cases.
BHEX has embedded BHT in their other business models with actual use cases. The practical use case of BHT in BHEX Chain, BHDM, BHEX exchange has provided tremendous support to boost its value.
The number of actual use cases is an essential indicator for a platform coin. BHEX has embedded BHT in all its businesses. According to BHEX’s official announcement, BHT can be used to offset trading fees(in short time), payment for BHDM hybrid cloud exchange system service, partner node reserve fund, OTC partner safety deposit, Bluehelix blockchain node election, node staking, users reward and etc. Such use cases have given BHT the value boost it needed to remain stable and a preferred coin in the digital world.
The launch of the Public chain project by a cryptocurrency exchange has been one of the hottest topics since early 2019. Being the infrastructure of the cryptocurrency industry, we can see an increase in public chain integration into the main exchange ecosystem. Soon the volume of such coins will be shifted to the public chain of the major cryptocurrency exchanges.
The research and development of BHEX Chain began in early 2018. It was introduced around the same period when Binance Chain and Huobi Chain was launched that year.
BHEX Chain was developed by a former employee of Google, Mr. Kai Wen, Ph.D. in Cryptography at the Stanford University in the United States. Mr. Kai Wen is now the Vice President of Technology in BHEX.
The distributed private key generation and signature technology developed by the BHEX team attained global patent certification. BHEX Chain has overcome all technical difficulties and is undergoing various development tests and implementations. Developers will be able to access the BHEX Chain Demo version from GitHub.com, which is scheduled to be launched soon. The BHEX Chain beta will be available from September and will go on ‘live’ in December.
Once the BHEX Chain is launched, BHT will become the principal token used in the BHEX Chain. Every transaction made on BHEX Chain requires the consumption of BHT tokens. This will help to increase the demand for BHT tokens.
Executive editor： 李萍萍