Hong Kong’s HashKey postpones HSK token launch due to ‘temporary market downturn’

Hong Kong’s biggest licensed crypto exchange operator, HashKey, has postponed the launch of its HSK token, citing the need to wait “for more favorable market conditions.”

HashKey Group, which operates the Hong Kong-based crypto exchange, is postponing the launch of its HSK token, saying the crypto market’s overall performance has been “relatively subdued over the past three months.”

In an X announcement on Oct. 15, the Hong Kong-based firm did not elaborate on the reasons for the delay, but emphasized that waiting for a “better opportunity” to complete HSK’s token generation event is “crucial in this environment.”

“Rushed listings do not serve the community’s best interests, so a consensus was reached through discussions with our partners and centralized exchanges.”

HashKey

Despite the current downturn, HashKey says it is focused on enhancing the long-term value of HSK and is committed to strengthening its infrastructure and ecosystem development, saying the firm anticipates a “significant growth surge in the crypto market by the end of this year.”

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HashKey first revealed plans for its utility token in November 2023, stating 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 offering fee discounts, specific rights for asset issuance, and early access to future token subscriptions.

According to the HSK whitepaper reviewed by crypto.news, there will be a total supply of 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 burn HSK tokens, using 20% of its net profits to mitigate the dilutionary effects of reward-based increases in circulating supply.

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