Market Analysis Report (16 Jun 2021)
16 Jun 2021
As you all know, I have been in the crypto space since 2016 and have explored various crypto platforms such as exchanges, wallets, lending platforms, etc. I have literally seen the best and the worst. Despite having so many existing options, I try to explore new platforms that can bring more value to the industry, especially our portfolios.
So today, I brought you another cryptocurrency exchange, i.e., Hoo Exchange. Hoo.com was established as a cryptocurrency wallet by Hufu Technologies in 2017 in Hong Kong. In the next two years, the scale and customer base of the crypto wallet grew significantly. In June 2019, the company acquired two Chinese exchanges Chaince and OAX, integrated them into Hoo.com, and built a full-fledged digital assets trading platform.
Now, let us know more about the brain and sweat behind this platform, i.e., its founder Ruixi Wang.
Do check out review of other popular exchanges:
Founder and CEO
Ruixi Wang is a Chinese entrepreneur and a crypto investor. Wang started exploring Bitcoin in 2013, and soon after that, he started a blockchain explorer called BtcMini to help people know more about blockchain and Bitcoin. Soon BtcMini went bankrupt.
Wang joined a Bitcoin mining company BitFountain. In early 2015, the owner of BitFountain ran away with 17,597 BTC, and Wang bought the mining machines and became a miner himself.
In 2016, Wang purchased a Chinese digital currency cloud mining and trading platform PoW8.com. In 2017, Wang started an ICO platform icooo.com which was quickly closed as the Chinese Govt. banned ICOs 3 months later.
In May 2018, Wang established Hoo Wallet, and the company was registered in Hong Kong. In June 2018, the company acquired Chaince and OAX exchanges and incorporated them with the Hoo wallet. This made Hoo a complete digital asset service platform. The Hoo Exchange went online on June 18, 2019.
Now let us understand the features offered by the Hoo Exchange to its users.
The features of the HOO Exchange can be listed as follows:
Hoo provides its users with an OTC platform to sell and purchase cryptocurrencies quickly and off-exchange. This helps the buyer or seller to transact at a fixed price which is not generally available on the exchange as the price fluctuates whenever there is a big sale or purchase order.
Hoo exchange provides its users with typical spot trade or margin trade feature. Basis Coingecko, around 400 tokens (507 pairs) are listed on the exchange for the purpose of trading.
Moreover, the trading platform of the exchange has an Innovation Hub. Projects which are yet in the stage of their infancy can be listed here. The risk-reward ratio on these projects is substantially high.
Hoo Exchange offers perpetual futures to its users. All the future contracts on the exchange are settled in a stablecoin, i.e., USDT.
Hoo Exchange also offers its users to buy or sell cryptocurrency options. A Hoo Option provides its buyer a right to refund, dividend, gain or buy back a token at a specific point of time at a predetermined price.
HooSwap is an Automated Market Maker (AMM) based trading desk built on the centralized platform of Hoo Exchange. A user can use HooSwap for an instant swap of tokens.
Further, a user can become a liquidity provider and provide liquidity to this trading desk through HooPool. As a result of becoming a liquidity provider, the user can earn liquidity rewards.
HooEarn provides users to earn passive income by investing in various savings plans. The savings plan offered by Hoo Earn can be categorized as follows:
Hoo Exchange provides potential miners with mining machines and also assists them with their management and maintenance. It is a professional mining service that deals with selling and purchasing new or second-hand mining machines and their repairs.
Hoo provides asset security management services to other OTC platforms, crypto exchanges, wallets, investment firms, and hedge funds. The platform supports over 20 public chains and thousands of tokens. This feature caters to a monthly capital flow of more than 16,000 BTC.
Hoo Labs provides its users with an opportunity to invest in crypto startup projects. A user can fund many startups at their infancy stage to have an early entry point into a particular project.
Hoo Smart Chain is a decentralized blockchain network that is compatible with smart contracts. The network supports a PosA consensus mechanism, a combination of Proof of Stake (PoS) and the Proof of Authority (PoA) protocols. The network has a TPS (Transactions Per Second) of 500+ transactions with a block time of 3 seconds. The network also supports cross-chain asset transfer, which helps in the optimization of the user’s experience.
The ecosystem is similar to Ethereum and Binance Smart Chain networks. Thus, the network can be used for the development DApps (Decentralised Applications) for investing, yield farming, and many other use cases.
The base trading fee for spot and margin trading on the Hoo Exchange is 0.2% of the transaction value. Further, a user may get a concession on the trading fee based on his VIP status.
There is no fee for the deposit of funds on Hoo Exchange. Further. The withdrawal fee is variable and is based on the type of token being withdrawn. Click here for more information on the fee charged by the Hoo Exchange.
Hoo Exchange has a web-based interface and also has a mobile app for iOS and Android devices. The mobile app is interactive, fast, and easy to use.
However, while using the web interface, I faced several issues such as:
Now, as we have a fair understanding of the features offered by the Hoo Exchange, let us have an understanding of Hoo Token.
HOO is an in-house governance token of the Hoo Exchange. The initial maximum supply of tokens was 1 Billion. However, in February 2021, the Hoo Exchange announced that the team had burned 900 Million unissued tokens, which has reduced the Maximum supply of tokens to 100 Million. Therefore, the updated maximum supply of Hoo Token: 100 Million.
There is not sufficient information about the circulating supply of the token. However, the Fully Diluted Value is approximately USD 230 Million.
The benefits offered by the Hoo Exchange to HOO Token Holders are as follows:
Now let us understand the benefits of Hoo Exchange.
The benefits of Hoo Exchange can be listed as follows:
However, there are some limitations as well.
The limitations of the Hoo Exchange can be listed as follows:
With thorough research of the platform, I am skeptical about the development team working for the exchange. The team is also not easily reachable to answers your concerns. However, the tokens listed on the exchange, including those on the Innovation Hub, look very interesting. Because it is not one of the biggest exchanges, several low-cap gems can be explored on the platform. I have experienced issues while using the app, and delay in withdrawals Overall, HOO at the time of writing this review, seems like an average exchange with great user interface. However, I would not bet big on this exchange for now, unless they improved on their communications, and ability to handle more traffic. There are bugs here and there on the platform, which one would experience as they use the platform more. On the flip side, HOO is doing a great job by offering some of the best crypto tokens which otherwise is available only on Uniswap.
Personally, I’m looking into LDO, WOO and a few others tokens which are listed only on HOO platform at the time of writing this HOO review.
Now, coming to the HOO token, I understand that the development team needs to update its documentation policy to provide more upfront information about the exchange features and upgrade its presence on social media platforms. The more they would engage with the community, the more it would lead to the platform’s adoption. Unless the exchange takes any concrete steps towards improvising its services, the HOO token is not a wise investment to make.
Please note that I am not a financial advisor, and this is not financial advice. DYOR before investing.
I hope this article would provide you a good insight into the Hoo Exchange. Let me know the projects or exchanges that you would like me to review.
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