Huobi Launches The First Universal Stablecoin: Review of Huobi HUSD!

Exchanges News

The cryptocurrency market seems to be developing and growing faster daily with new stablecoins surfacing almost weekly in the last 2 months to give a safer haven for crypto investors/traders to hedge their money against the volatile and unstable price of crypto assets. One of the world’s leading crypto exchanges by market capitalization, Huobi seems not to be caught unaware to the plight of their users as regards to stable coin. Thus, the launching of their universal stablecoin called HUSD.

In this article, we will go through what stablecoin is and check some features of HUSD that makes it different from other stablecoin and possibly worth checking out.

What is A Stablecoin?

A stable coin in the cryptocurrency world is referred to any crypto asset which has it value pegged to a fiat currency like Dollar, Pounds, Yen and others. But beyond just been pegged at 1Stablecoin = $1 for example, it also does not get easily affected by the daily market fluctuations that crypto assets are known for. Bitcoin, for example, could have a day open trade price of $6,600 and within 12hours could jump to $7,000 (that is +$400) or could crash off to about $6,000 with same time range but stablecoin don’t usually undergo such unpredictable volatile price movements and only could go up/down few cents above/below the pegged amount (like $1 to $1.2 or $0.97).

What Happens When Stablecoin Becomes Unstable?

As discussed above, for a crypto asset to be considered a stablecoin, it should have less or no easily noticeable price fluctuation and movement above/below the pegged amount. The moment the stablecoin cannot hold this features, it’s is no better than other non-stable cryptocurrencies. The most popular stablecoin in the crypto market for some years now is Tether (USDT). The instability of Tether led to new era of stablecoins in cryptoworld:

Tether (USDT)

Tether (USDT) is owned by a crypto exchange Bitfinex but a lot of issues had remain unresolved by the company behind this stablecoin, like non-transparency in audit of the bank account they claim it holds equivalent of the tether been minted out to the crypto market which stands over $2.4Billion. This had led to the crypto community gradually losing trust in Tether as a reliable stablecoin but could not just stop using it since it was the only available stablecoin then. That eventually changed recently, when about three new stablecoins storm the cryptoshere almost at same time with more transparent audit and most approved by financial regulators and agencies which helps to boost confidence in them as opposed to Tether.

HUSD – The Universal Stablecoin

HUSD Infographics: Huobi Global

Huobi launches HUSD on October 19th, 2018. Huobi HUSD is an all-in-one stablecoin which aim to give further hedge to investors/traders crypto assets beyond what any single or multiple stablecoin can achieve separately. A quick check at the features as officially released by Huobi Global on their official Blog helps understand what this universal stablecoin set to achieve below;

HUSD is an integrated solution targeted at multiple stablecoins, it helps to:

<1> reduces the risk associated with dealing directly with individual stablecoin

<2> eliminate the need to choose between multiple stablecoins;

<3> saving costs when switching between stablecoins.

When you deposit any kind of stablecoins, they will be shown as HUSD in your account. You may withdraw any kind of stablecoin; when the amount of a particular stablecoin is not sufficient in your account balance, you may withdraw other stablecoins in which you have excess balances in.

For example, when you deposit 1 PAX, it will show as 1 HUSD in your account, and you can withdraw 1 TUSD (not considering transaction fees on the blockchain).

Currently, the HUSD solution supports four kinds of stablecoin which are:

  • Paxos Standard (PAX),
  • True USD (TUSD),
  • USD Coin (USDC) and
  • Gemini Dollars (GUSD).

Huobi aims to continuously keep a close watch on new stablecoins that appear on the market, optimize the HUSD standards and add more stablecoins being involved in the HUSD system.

Concurrently, they will evaluate the existing stablecoins in the HUSD system on a real time basis, if the stablecoin doesn’t meet the corresponding risk control standard; it will be remove it off from the HUSD system.

Crypto Community Reactions to Huobi HUSD Universal Stablecoin Launch

We expect some reactions from the stablecoins involved to ascertain their approval and also the crypto community at large and have been able to capture it in pictures below:

How To Use HUSD?

To access Huobi HUSD, it currently only available for now via their exchange and to get started click here to register an account free.

What’s your take on this newly launched Huobi HUSD universal stablecoin? Comment below and don’t also forget to join our official Telegram (check the link at the footer) to access more crypto news daily for free.

Keywords:  #HUSD – #TheUniversalStablecoin , #HuobiLaunches: HUSD , #HuobiHUSD – My review is in,  – Once added post and log work.

DISCLAIMER:

Kindly do your own researches before you invest in any crypto project because the above is for information purpose only, and not to be taken as professional or legal investment/trading advice.

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