As is the case with other reputable exchanges, Huobi Pro has a strict set of guidelines when it comes to listing potential cryptocurrency projects on their flagship exchange. Since no exchange has infinite manpower, it’s simply impossible to keep up with all the new projects in the space while adhering to these guidelines. To solve this problem, Huobi created HADAX.
What is HADAX?
HADAX, short for Huobi Autonomous Digital Asset Exchange, is Huobi’s user-voted exchange platform designed to keep up with the ever growing number of digital assets added to the cryptocurrency market on a daily basis. This exchange platform relies on the HT (Huobi Token) holders and super voting nodes to come to a consensus on which ERC-20 tokens to add to HADAX. In this post, you’ll learn more about the HADAX platform and a few venture capital firms who have applied to be super voting nodes.
HADAX’s trading interface is nearly identical to Huobi Pro’s, with the most obvious difference being the presence of a number of tokens you’ve probably never heard of. Personally, as someone who’s fairly active in the crypto space, SEELE is the only coin I know anything about on HADAX. This factor isn’t necessarily a negative though – actually, quite the contrary. HADAX gives educated investors an early opportunity to speculate on “bleeding edge” assets and their inherent volatility before they’re thoroughly reviewed by the bigger mainstream exchanges like Huobi Pro, Binance, Kucoin, and more. Lastly, HADAX enjoys the same level of excellent security as the Huobi Pro flagship exchange. In other words, HADAX’s risk factor comes from the volatility of the listed assets, and not the security practices of the platform.
HADAX Token Listing Process
HADAX, in its current form, only supports ERC-20 tokens, and this is what the token listing process looks like.
1. Fill in the Application Form
Projects that are interested in listing their ERC-20 token on HADAX must fill out an application form for compliance and risk control purposes. The form asks for general information such as the names of the people involved, a brief introduction to the project, token economics and distribution, other potential exchange listings, and more. This crucial first step allows Huobi to filter out any obvious scams and whitelist the project for community voting.
2. Project Review by Huobi
After an application is received, Huobi’s Compliance & Risk Control Department will review the application. If the project in question passes this initial seven day review period, it will be sent to the super voting nodes.
3. Voting by Super Voting Nodes
Super Voting Nodes (SVNs) are “composed by professional investment organizations with an excellent reputation in the industry”, and their job is to review and select high quality projects that will move on to public voting by the Huobi community. In order to become a SVN, the interested institution must hold a minimum of 1 million HT (~$5 million USD) and disclose their investment portfolio and philosophies to Huobi via this application process. This large minimum HT investment ensures the SVNs will have the best interests of the community in mind.
At the moment, HADAX already has dozens of Super Voting Nodes and new members are being added on a consistent basis. The presence of such a large number of institutions with varying financial interests aids in decentralizing HADAX’s token selection process, ultimately resulting in a carefully curated collection of digital assets for the final public voting stage.
4. Public Voting
After the final candidates have been chosen by the Super Voting Nodes, HT holders in the general community can vote for their favorite projects. Voters are also able to share incentives set by the various projects they vote for. For example, “the total amount of the incentive set up for the A project is 1 million tokens. The users cast a total of 1 million votes. One token is given to each vote, and the incentive tokens can be adjusted by the project team in the voting process, but it can only be raised and can not be lowered.” Following the public vote, the tokens for the winning projects will be listed in the next five day listing cycle.
Why VC Firms are Investing in Super Voting Nodes
Now that we’ve established what HADAX is and what the token listing process looks like, let’s talk about why so many venture capitalist firms are interested in becoming Super Voting Nodes.
- Become a Super Voting Node is a great way to network with new and upcoming projects in the blockchain and cryptocurrency space. Since SVNs act as gatekeepers in this approval process, I’m sure projects interested in listing their tokens on HADAX will have to make pitches to SVNs. This is beneficial to SVNs because they just may end up hearing from the next “crypto unicorn” at an early stage in the investment cycle.
- Successful projects that receive votes from all the Super Voting Nodes and receive adequate trading volume following a successful HADAX listing will be considered for listing on the flagship Huobi Pro exchange. This presents a situation where SVNs can profit from investing in high quality projects before they are listed on a higher volume exchange.
- The Super Voting Node model is mutually beneficial for both parties involved. Huobi receives investments and funding to innovate in the space, while SVNs receive access to Huobi’s resources and connections.
- Super Voting Nodes are invited to participate in conferences hosted by Huobi Pro. For example, Huobi recently hosted Blockchain Festival Vietnam in Ho Chi Minh City, where representatives from various SVNs were able to speak about their institutions and companies. These huge conferences represent great marketing, publicity, and networking opportunities for the SVN participants.
- Super Voting Nodes are invited to workshops and podcasts hosted by Huobi. This gives participating institutions a chance to interact with the latest developments in the blockchain and cryptocurrency industry.
HADAX currently has dozens of Super Voting Nodes, but two of the most well known institutions that have become SVNs are Hashed Capital and Bitmain.
#Hashed Capital is one of the most influential blockchain-related institutions in South Korea. The cryptocurrency fund currently manages over 50 digital assets equivalent to ~$250 million in USD value, with ICX, EOS, and ONT representing the majority of their holdings.
#Hashed is also involved as a blockchain accelerator, and actively invests in many upcoming projects. Lastly, #Hashed has also participated as a judge in Deblock DApps Day, a joint collaboration between ICON and AD4th that showcases new blockchain projects in South Korea.
Bitmain Technologies is the world’s largest manufacturer of ASIC mining equipment for mining BTC, LTC, and more. The company, which is estimated to have made over $3 billion in profits last year, was founded by Jihan Wu and Micree Zhan in 2013.
While Bitmain has been criticized for mining centralization, they have also invested in various blockchain-related startups and services – one of the latest being Huobi’s HADAX.
The introduction of HADAX as a gateway to the latest digital assets is a great way for educated investors to speculate on future market leaders. The initiative is supported by some of the biggest companies and institutions in cryptocurrency, and I expect many more to sign on in the future. Visit HADAX’s official website to sign up today.