Huobi's New Voting Rules to Rise Criticism

The company introduced the idea of "Standing Nodes," for which the HADAX platform will invite 14 large, traditional venture capital firms to join
02 July 2018   370

New tokens voting rules changes on the HADAX platform of Huobi's cryptocurrency exchange caused a negative reaction from the community. This is reported by CoinDesk.

On Friday, Huobi published an announcement in which it said that from now on it will rely on 2 groups of funds when making decisions on listing tokens. A group of "standing nodes" will be created on the platform, 14 large traditional venture companies such as ZhenFund, FBG, Unity Ventures and Draper Dragon will be invited to participate. A group of "standing nodes" will also be formed, consisting of 31 crypto-currency venture companies, for example Node Capital, Dfund and BlockVC, chosen by voting.

Huobi launched the HADAX platform in February this year and invited users to participate in the process of selecting assets for trading using HT tokens. Later, the company introduced a mechanism that allowed well-known venture firms to obtain supernode status and help HADAX select projects before they are allowed to a public vote.

All projects for the public voting list must be supported by a Standing Node and projects that were not supported by any standing nodes will be removed from the list and votes will be refunded.
 

Updated HADAX Rules

Thus, now regular nodes have more weight in the HADAX ecosystem and can decide which tokens to allow before voting.

The decision was immediately criticized by various crypto-currency funds that accused Huobi of "discrimination and authoritarianism".

The founder of Node Capital and Huobi co-founder Du Do Jun said that he would no longer participate in the process of selecting tokens. He was joined by representatives of other funds, who also said that they do not intend to put up with the new Huobi policy and plan to withdraw their applications for the role of supernode.

I apologize for not having effectively communicated with supernodes before publishing our new decision. ... We understand that some selected nodes feel disrespected or their branding is hurt, which led to their respective responses. We build collaborations based on a win-win purpose. Partnership or not is always a free market choice. Huobi always opens its gate for partners. But HADAX must be completely revamped and we will have another major upgrade in July. In regardless of what model it will take, we think being responsible for users is of utmost importance.
 

Li Lin

CEO, Huobi Group

In response, co-founder and CEO of Huobi Group, Li Lin, wrote that the new process is designed to improve the quality of tokens on the platform, although he admitted that discussion of the solution should have more attention.

Huobi to Acquire Public Firm for $70M

Company took another step forward to enter the stock exchange through a reverse takeover procedure
30 August 2018   339

Huobi Global Limited completed the acquisition of Hong Kong's Pantronics Holdings Limited and took a step closer to enter the stock exchange through a reverse takeover procedure. This is stated in the joint statement of enterprises.

It is reported that the Huobi acquired about 199 million shares of the company through subsidiaries of Huobi Capital and Huobi Universal.

So, at the moment Huobi owns 66.26% of Pantronics Holdings. The average price of the share in the transaction was HK $ 2.72 ($ 0.35), and the total value of the stake is about $ 70 million.

Note that earlier Huobi was going to take over most of the shares of Pantronics Holdings. It was assumed that the chairman of Huobi Group Li Lin will become the owner of 73.73% stake in Pantronics.

Reverse takeover procedure assumes that a non-public company acquires a public company and automatically enters the stock exchange.

Earlier, the bitcoin-exchange Huobi Global announced the launch of a new platform designed for automatic listing of tokens.