Huobi (HT)

Trading and Investment

Huobi offers spot trading, futures, and derivatives trading with access to over 700 cryptocurrencies and around 800 trading pairs. Users can trade with leverage up to 125x and use an API to customize and automate trading strategies.

Earning and Staking

Users can stake cryptocurrencies and participate in Huobi Earn to earn fixed or variable yields on their deposits, sometimes reaching double or triple-digit returns.

Loans and P2P Trading

Huobi provides crypto-backed loans and a P2P marketplace where users can convert fiat to crypto and vice versa without fees.

Token Benefits

Holding Huobi Token (HT) can reduce trading fees and allows holders to vote on the platform’s development. Huobi also runs a token buyback and burn program to support the token’s value.

Ecosystem and Technology

Huobi has its own blockchain called Huobi Eco Chain, a stablecoin named HUSD, and a series of Ethereum-based tokens (H-tokens) that bridge assets between blockchains.

User Experience

The platform supports multiple languages, offers a professional and user-friendly interface, and provides mobile and desktop wallets for managing assets easily.

Pros

• Offers over 600 cryptocurrencies for trading, providing a wide selection.
• Competitive and straightforward fee structure, with spot trading fees around 0.2% that can be reduced by holding Huobi Token (HT).
• Comprehensive trading options including spot trading, futures, margin trading, copy trading, and algorithmic trading bots.
• Provides additional services like staking, crypto loans, yield products, and a token launch platform.
• Strong security measures such as 98% cold storage, two-factor authentication, anti-phishing codes, and a large security reserve fund (20,000 BTC).
• User-friendly apps and a comprehensive trading platform suitable for experienced traders.
• Global reach with presence in multiple countries, especially popular in Asia.
• P2P marketplace allows zero-fee fiat-to-crypto and crypto-to-fiat conversions.

Cons

• Not available to users in the United States due to regulatory restrictions.
• Platform can be complex and overwhelming for beginners because of the many products and features.
• Has faced security concerns and legal proceedings in some jurisdictions, affecting its reputation.
• Some users report challenges with tax reporting limited to Huobi platform data only.
• Fees are higher compared to some competitors like Gate.io and KuCoin, which offer lower base fees.
• Past allegations of wash trading have impacted its market reputation.

Founders

Huobi was founded by Leon Li in 2013. He was the main shareholder and CEO of the company.

Ownership Changes

In October 2022, Leon Li sold all his shares to the investment company About Capital. The main investor of About Capital is Justin Sun, founder of Tron. Although Justin Sun denied being the direct buyer, he joined Huobi’s advisory board and became involved in the company’s development.

Advisory Board

The advisory board includes Du Jun, a cofounder of Huobi Global, Ted Chen (CEO of About Capital Management), Justin Sun (founder of Tron), Wang Yang (vice president of Hong Kong University of Science and Technology), and Leah Wald (CEO of Valkyrie Investments).

Huobi Investors Overview

• Founders and Key Figures: Huobi was formed by Jun Du and Leon Li. Li Lin, a notable figure, sold a controlling stake in Huobi for about $1 billion to Justin Sun in 2022.

• Investment Arms: Huobi has several investment arms including Huobi Capital and Huobi Ventures. Huobi Capital primarily funds cryptocurrency and blockchain projects, with an average startup valuation of $10-50 million and involvement in 2-6 deals annually. Huobi Ventures focuses on seed to early-stage investments in blockchain, cryptocurrency, and gaming industries across North America, Asia, and Europe.

• Co-Investors: Besides Huobi’s own investments, startups are often financed by investors like Dan Matuszewski, Richard Anderson, and Napoleon Ta.

• Subsidiaries and Divisions: Huobi operates sub-organizations such as Huoxun, Huobi Japan, Huobi Eco, and Huobi Capital, which contribute to its investment activities.

• Investment Focus: The firm invests in rounds typically involving 2-3 participants and targets projects in gaming platforms and blockchain technology sectors.

Islamic Scholars' Opinions

Some scholars, like the head of Sharia compliance in Indonesia, say crypto trading is haram because it involves uncertainty, gambling, and harm. Others, like Mufti Muhammad Abu-Bakar, say buying and selling cryptocurrencies like Bitcoin is halal since non-physical items can be valid property under Islamic law.

Huobi Token and Business Model

Huobi Pool Token (HPT) is used for governance and mining rewards within Huobi's proof-of-stake mining pool. Its business model is based on legitimate proof-of-stake operations, which aligns with some halal principles.

General Crypto Halal Criteria

Halal cryptocurrencies must avoid interest (riba), gambling (maysir), and excessive uncertainty (gharar). They should have transparent transactions, legitimate business models, and rewards from halal revenue sources.

Conclusion

No clear consensus exists on Huobi's halal status. Some Islamic authorities consider crypto trading haram, while others find certain tokens and operations halal. Therefore, the answer is No, Huobi is generally not considered halal by the strictest Sharia compliance views due to elements of uncertainty and speculation.