Huobi Prime, the initial exchange offering (IEO) platform from Huobi Global, has recently concluded another successful token sale. The EMOGI (LOL) token will now be listed on the exchange for general trading. This listing marks the fifth project to launch on the Huobi Prime platform, indicating that the current appetite for IEOs doesn’t appear to be waning.
Huobi Prime launched in March this year and has been gaining traction ever since. According to the published results, the sale of LOL tokens closed on August 15 having hosted over 13,000 participants. The event was held in two rounds, the first being a “jackpot” where participants competed for trading tickets, with 793 winners each purchasing 367,500 LOL tokens. Overall, the sale hit its goal, selling out just under 1.5 billion LOL tokens over both rounds.
About EMOGI – Not Just for Laughs
EMOGI is the token of a mobile video application called Bermi, which is going viral in Latin American countries. It bills itself as a “social digital currency” and aims to capitalize on the increasing appetite for blockchain and cryptocurrencies in Latin America. The project believes that there is a growing use case for crypto in countries in this region, many of which are suffering from prolonged economic instability.
EMOGI sees use cases in remittances, and as a financial resource for the unbanked. Bermi apparently already has users numbering into the millions, meaning that LOL tokens have a ready-made user base. The project has been incubated by IOST, and the LOL tokens are issued on the IOST blockchain.
An Instant Hit
EMOGI is now the fifth project to take advantage of Huobi Prime’s innovative IEO platform, which operates a model that’s proving to be a massive hit among users. Most IEO platforms will list a token at a fixed sale price. For example, Binance Launchpad determines the token value in USD, denominating the sale in BNB by making a conversion shortly before the sale opens.
In contrast, Huobi sets a lower price limit on the value of the asset in USD, but then allows active trading to determine the price in HT once the sale opens. This model puts pressure on traders to get in early on the token sale if they want to grab a bargain while the price is low. It also serves the project well, as the token price is quickly driven up through increasing demand.
If there’s any doubt, then the numbers speak for themselves. The very first Huobi Prime event was for the TOP token, which increased in value by over 500 percent during the sale period. The sale almost became a victim of its own success, given that only around 3,700 of 130,000 users actually managed to get their hands-on TOP tokens during the sale.
Huobi had to quickly rethink its eligibility criteria for the next sale, of NEW tokens. This time, the project still managed to increase its token value by over 500 percent, but this time, more than 17,000 users participated in the event. The third Prime offering was for RSR tokens, which was timed to coincide with Bitcoin Pizza Day. Alongside the RSR sale, Huobi offered users the chance to buy 38 BTC at a 50% discount.
The momentum shows no sign of slowing, as the company has already alluded to voting criteria for the sixth Prime sale. If the previous results are anything to go by, it will be one worth watching.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.