October 18, 2024
By Our Correspondent
Hong Kong’s largest licensed cryptocurrency exchange operator, HashKey, has announced a delay in the launch of its HSK token, citing the necessity to await “more favorable market conditions.” The HashKey Group, which manages the Hong Kong-based exchange, indicated that the overall performance of the cryptocurrency market has been “relatively subdued over the past three months.”
In a statement released on X on October 15, the firm did not provide specific reasons for the postponement but highlighted the importance of waiting for a “better opportunity” to conduct HSK’s token generation event, which it deemed “crucial in this environment.”
The company stated, “Rushed listings do not serve the community’s best interests, so a consensus was reached through discussions with our partners and centralized exchanges.”
Despite the current market downturn, HashKey remains committed to enhancing the long-term value of HSK and is focused on strengthening its infrastructure and ecosystem development. The firm anticipates a “significant growth surge in the crypto market by the end of this year.”
HashKey initially announced its plans for the utility token in November 2023, indicating that the token’s economic model would be “closely tied to the long-term interests of ecosystem contributors.” The HSK EcoPoints token is an ERC-20 token built on the Ethereum blockchain, designed to incentivize ecosystem contributors by providing fee discounts, specific rights for asset issuance, and early access to future token subscriptions.
According to the HSK whitepaper reviewed by crypto.news, the total supply will be capped at 1 billion tokens, with 65% allocated for marketing and business development, 30% for the HashKey team, and 5% reserved for additional user protection within the ecosystem. The exchange also plans to implement a token burn mechanism, utilizing 20% of its net profits to counteract the dilutionary effects of reward-based increases in circulating supply.
