HashKey Postpones HSK Token Launch Amid Market Downturn

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

In an announcement on X (formerly Twitter) dated October 15, HashKey Group explained that the overall performance of the crypto market has been “relatively subdued” over the past three months. While the company did not provide specific details on the reasons for the delay, it emphasized the importance of waiting for a “better opportunity” to conduct HSK’s token generation event.

Despite the current market challenges, HashKey remains committed to enhancing the long-term value of the HSK token. The firm is focused on strengthening its infrastructure and ecosystem development, expressing optimism for a “significant growth surge in the crypto market” by year-end.

HashKey initially announced plans for its utility token in November 2023, highlighting that the token’s economic model would align closely with the long-term interests of ecosystem contributors. The HSK EcoPoints token is an ERC-20 token built on the Ethereum blockchain, designed to incentivize participants with benefits such as 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 of HSK tokens will be capped at 1 billion, with allocations of 65% for marketing and business development, 30% for the HashKey team, and 5% reserved for user protection within the ecosystem. The exchange also plans to implement a token burn mechanism, using 20% of its net profits to offset the dilution effects from reward-based increases in circulating supply.