The exchange will be dedicated to EOS and will be the first such platform for the world’s fifth largest cryptocurrency.

Huobi Pool, the cryptocurrency mining arm of the Huobi Group, will launch a cryptocurrency exchange in the first quarter of 2019. The platform, reportedly, will be dedicated to EOS, one of the leading cryptocurrencies.

A press release announced the news, and the exchange will enable trading of various digital assets against EOS.

Huobi ranks among the three largest cryptocurrency exchanges of the world, and its parent company, Huobi Group, boasts a turnover exceeding $1 trillion.

EOS, a smart contract platform, uses the delegated proof-of-stake (DPoS) algorithm for validation of transactions. Holders of EOS coins can collaborate and participate in the decision-making process and share the mining rewards generated.

Cao Fei, CEO at Huobi Pool, says:

As an EOS super node, Huobi Pool has placed its ecological development high on its list of priorities. Launching this EOS exchange is simply the next logical step in our support.

Huobi’s Support for EOS

Huobi Pool has been supporting the EOS community since the launch of the firm earlier this year. The firm previously collaborated with other block producers to build a test chain for EOS called the Crypto Kylin Testnet. EOS-based projects can be tested on the platform.

Huobi Pool has also set up an EOS community for holders of the cryptocurrency to understand node elections and developed a voting platform for EOS holders.

Earlier in September, a document leaked by an employee of Huobi had exposed collusion between the exchange and other block producers. The leaked spreadsheet revealed the details of how Huobi and some other block producers of the leading blockchain indulged in mutual voting and sharing of rewards from producing blocks in EOS.

The incident had drawn sharp criticism from members of the cryptocurrency community.

The EOS Eco-System

Despite the flak that EOS has faced since its mainnet launch, the cryptocurrency has continued to maintain its position among the top five digital assets by market cap.

The blockchain has only 21 nodes acting as validators (masternodes). It is speculated that about 10 addresses on the EOS network hold almost 50% of all tokens. That is something many would consider as being very centralized and contrary to the philosophy behind blockchain technology.

EOS had raised $4 billion through an ICO (Initial Coin Offering) sale that ran for a full year. At the time of writing, EOS is trading at a price of over $2.63 and commands a market cap of over $2.38 billion.

What are your thoughts on Huobi Pool’s decision to launch an EOS-dedicated exchange? Let us know in the comments below.

Images courtesy of EOS and YouTube/@EOS.IO.