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HTX’s Strategic Approach to Crypto Asset Quality

HTX, one of the frontrunners in the cryptocurrency exchange market, is taking a bold step towards prioritizing quality over mere market noise. Recent listings from this dynamic exchange underscored this commitment, especially with the impressive surge of the asset $TREE (Treehouse) that skyrocketed six times its value shortly after its launch on July 29. This remarkable performance garnered significant attention from the crypto community, marking HTX as a serious player in discerning valuable assets.

On August 7, during the third installment of the “Real Talk with HTX Executives” livestream, Jasper, the Head of Assets at HTX, engaged with community members, including X (formerly Twitter) users and HTX DAO committee members. The session was an avenue for Jasper to share insights into HTX’s comprehensive asset-screening framework.

Multi-layered Evaluation System

Jasper highlighted the thorough evaluation methods HTX employs to identify long-term viable assets. The exchange has developed a multi-faceted system that evaluates projects before they get listed. For assets already trading on other platforms, HTX continuously assesses their ongoing performance and development. For new projects, particularly those that have yet to issue tokens, the review process incorporates several critical metrics including:

• - Holdings allocation: A look into how the tokens are distributed among its holders.
• - On-chain activity: Monitoring user engagement and transaction volumes on the blockchain.
• - Smart contract audits: Thorough checks for vulnerabilities or potential security issues within the project's codebase.
• - Valuation rationale: Scrutinizing whether the asset's valuation is justifiable.

Jasper explained, “We keep an eye on potential issuers for up to a year before considering them for listing. Each project undergoes two to three detailed evaluations that delve into team backgrounds, funding sources, market fundamentals, and risk compliance, among other factors.” Not stopping there, he noted that HTX also utilizes reputable platforms like RootData, Glassnode, and CertiK to ensure data integrity and guarantee safety of contracts involved in the listings.

Ultimately, an asset can only stand out if it addresses a true need within its sector. Protocols such as AAVE, UNI, LINK, and TRX not only serve immediate market necessities but also demonstrate robust cash flow and sustainability in the long run. In contrast, projects built on exaggerated hype or manipulated data are swiftly flagged by HTX’s rigorous assessment criteria.

Strengthening Community Engagement

HTX is also keen on enhancing transparency within the community while fostering more robust engagement with users. Jasper mentioned the introduction of features like asset watchlists and trading pilot zones. The HTX DAO will provide community members a platform to suggest and evaluate potential new listings, effectively complementing the official vetting process. This collaborative approach aims to further democratize the asset selection process.

In the second quarter of this year, HTX unveiled its Innovation Zone, tailored specifically for early-stage projects and meme coins, which traditionally carry higher risk due to their volatility. This allows users to better align their investment choices with their risk appetite while still maintaining access to a broad array of options.

Despite the progressive steps HTX is taking, Jasper was quick to point out the inherent unpredictability of crypto markets. “No exchange, even the giants like Binance or Upbit, can guarantee that every asset listed will outperform. The complexity of the market is influenced by factors such as project capability, market dynamics, tokenomics, and broader macro trends. Investors must conduct thorough research and remain sensible in their trading decisions,” he explained.

About HTX

Founded back in 2013, HTX (previously known as Huobi) has evolved from just a trading platform to a multifaceted blockchain services provider encompassing asset trading, financial derivatives, research, and incubation. With a vision to serve as a leading entrance to Web3, HTX focuses on maintaining high standards of security and compliance while establishing a thriving ecosystem for virtual asset enthusiasts worldwide.

For further information, visit HTX’s official website or connect on their platforms, including X, Telegram, and Discord.