For crypto exchanges, the launch of its own public chains is more symbolic than actual significance as commercial propaganda.

On the afternoon of February 29, many users received a post sent by Huobi official:

Huobi global decides to burn 97.3423 million unissued HT in the operation part. 50.075600 million HT in investor protection funds from secondary market buybacks and other income in the first and second quarters of 2018 were permanently burnt, and subsequent risk accidents were borne by the platform.

The employee incentive part is repurchased and burnt by 5% of the platform’s revenue, and will not flow into the secondary market. HT will enter “absolute deflation”. The total number of HT burnt above is 0.147417900 billion.

The other two major Chinese crypto exchanges are bound to take similar measures to stabilize investors of their platform token, as, in terms of income, the difference between platform token investment will not be too large. The market behavior will basically balance the income of the three platform tokens.

After Huobi sent out the post, its platform token HT pumped to over $5.30. However, it fell to the price of $4.8 again.

So from the long-term perspective, do the platform tokens of the three major Chinese crypto exchanges worth investment? In fact, their tokens worth be investing in in the long run. Both HT and BNB have not exceeded the highest price they have ever reached, and there is still space for them to go up.

The three major crypto exchanges have launched their public chains when burning their platform tokens. For crypto exchanges, the launch of its own public chains is more symbolic than practical significance as commercial propaganda.

As the infrastructure of the blockchain industry, the success of a public chain requires the joint efforts of technology, supervision, and users. The speed of technical iteration often exceeds the blueprint originally planned by the public chain project. As the safety margin of users, supervision is also an important link. For these two dimensions, some public chain projects can adjust themselves to deal with it. On the contrary, the most difficult to improve and obtain is actually the users’ trust.

Only a few public chains will survive. Most of the public chains either gradually die out or are dispensable and meaningless. Therefore, we should not pay too much attention to the progress of the exchanges’ public chains, but to the profitability and operation of the exchange itself, which is the fundamental factor to stimulate the future development of the platform tokens.