The year 2018 was widely regarded as a bear market for the global cryptocurrency industry, marked by declining prices and reduced investor sentiment. However, amid this downturn, one of the leading Bitcoin exchanges—Huobi—defied market trends and achieved record-breaking performance. According to official data released by the exchange, Huobi Global processed over $200 billion in trading volume in 2018, while its fee revenue exceeded $500 million, representing a year-on-year increase of more than 100%.
This remarkable growth highlights Huobi’s expanding influence and resilience during challenging market conditions. Even as digital asset valuations dropped across the board, Huobi managed to strengthen its infrastructure, broaden its service offerings, and deepen its global footprint.
Huobi's Expanding Ecosystem and Mining Leadership
Beyond its core exchange operations, Huobi has developed a robust ecosystem that includes mining, over-the-counter (OTC) trading, derivatives, and cloud solutions. Notably, Huobi Pool has emerged as one of the most influential DPOS mining pools globally and ranks among the top ten POW mining pools. By December 31, 2018, its computing power surpassed 2,000 petahashes (P), underscoring its growing role in blockchain network security and decentralization.
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This expansion into mining reflects a strategic vertical integration approach—allowing Huobi to serve users across multiple layers of the blockchain value chain, from asset trading to network participation.
Record-Breaking Performance Across Key Business Lines
In a company-wide letter, Huobi founder Leon Li shared insights into the exchange’s 2018 achievements. He emphasized that nearly every key metric reached an all-time high last year:
- Huobi OTC reported an average daily trading volume exceeding $100 million, solidifying its position as one of the largest peer-to-peer fiat-to-crypto platforms globally.
- Huobi Futures, launched in December 2018, saw its first-month trading volume surpass $20 billion—demonstrating strong demand for regulated derivative products even in a bear market.
- Huobi Cloud, the exchange’s white-label solution for startups and financial institutions, now supports over 100 partners worldwide, with combined daily trading volumes exceeding $30 million.
These figures illustrate not only user trust but also the scalability and reliability of Huobi’s technology stack.
Global Expansion and Regulatory Compliance Milestones
One of the most significant strategic developments in 2018 was Huobi’s push toward regulatory compliance and international licensing. The exchange successfully secured operational licenses in key jurisdictions, including the United States, Japan, and South Korea. Notably, its Korean subsidiary entered the top three in local trading volume rankings—a testament to its localized approach and adherence to regional regulations.
Additionally, through a strategic acquisition, Huobi gained control of Tongcheng Holdings, a company listed on Hong Kong’s main board. This move provided access to traditional financial markets and enhanced credibility among institutional investors.
Huobi also independently applied for and obtained a DLT (Distributed Ledger Technology) license from Gibraltar in Europe. This allows the platform to legally offer blockchain-based asset trading services across EU markets under clear regulatory oversight.
Leon Li stated that these milestones “lay a solid foundation for us to launch compliant services in these regions,” signaling a long-term commitment to operating within legal frameworks rather than circumventing them.
Navigating Challenges Ahead: A Forward-Looking Strategy for 2019
Despite the impressive results, Li acknowledged that 2018 was a difficult year—both economically and technologically—for the blockchain sector. He warned that 2019 could be even tougher, potentially presenting greater challenges than any of the previous six years.
“We must prepare for deeper market corrections, increased regulatory scrutiny, and continued public skepticism,” Li noted in his message.
To navigate this uncertain landscape, Huobi plans to focus on three core strategies:
- Compliance-Driven Growth: Deepen presence in regulated markets like the U.S., Japan, and South Korea by aligning products with local laws and building trusted relationships with regulators.
- Localization: Adapt user experience, customer support, and product features to meet regional needs—not just language translation, but cultural and regulatory alignment.
- Global Network via Partnerships: Expand reach in emerging markets through Huobi Cloud, enabling local firms to launch secure, scalable exchanges using proven infrastructure.
This hybrid model—combining direct operations in major economies with partnership-driven growth elsewhere—positions Huobi as a truly global player in the digital asset space.
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Core Keywords Identified
- Cryptocurrency exchange
- Trading volume
- Fee revenue
- Blockchain ecosystem
- OTC trading
- Derivatives platform
- Regulatory compliance
- Global expansion
These keywords naturally appear throughout the article and reflect key search intents related to exchange performance, market trends, and compliance strategies.
Frequently Asked Questions (FAQ)
Q: How did Huobi achieve growth during a bear market?
A: Huobi focused on expanding its product suite—including futures and OTC trading—while investing heavily in global compliance and partnerships. This diversified revenue model allowed it to thrive even when market sentiment was negative.
Q: What is Huobi Cloud?
A: Huobi Cloud is a white-label solution that enables financial institutions and entrepreneurs to launch their own digital asset exchanges using Huobi’s technology, liquidity, and risk management systems.
Q: Is Huobi regulated?
A: Yes. As of 2018, Huobi held or was in the process of securing licenses in several major markets, including Japan, South Korea, the U.S., and Gibraltar (EU), demonstrating a strong commitment to regulatory compliance.
Q: What was Huobi’s trading volume in 2018?
A: Total annual trading volume exceeded $200 billion, with derivatives alone generating over $20 billion in volume within just one month of launch.
Q: Why is mining important to Huobi’s strategy?
A: By operating large-scale mining pools (both DPOS and POW), Huobi strengthens its role in blockchain networks, enhances ecosystem integration, and captures value beyond trading fees.
Q: What are Huobi’s plans for future growth?
A: The exchange aims to expand compliance-first operations in developed markets while leveraging Huobi Cloud to support local partners in emerging economies—building a decentralized yet interconnected global trading network.
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Final Thoughts
Huobi’s 2018 performance demonstrates that sustainable success in the volatile crypto industry requires more than just capitalizing on bull runs. It demands resilience, innovation, and a clear vision for long-term legitimacy. With record-breaking revenue, strategic licensing wins, and a diversified ecosystem, Huobi has positioned itself not just as a marketplace—but as a foundational pillar in the evolving world of blockchain finance.
As the industry enters what may be its most challenging phase yet, platforms like Huobi show that stability, compliance, and user-centric design can drive growth—even in the deepest bear markets.