Huobi Group, the group being the world third largest crypto exchange Huobi Pro, is all set to add 4 stablecoins to its offering on 19th October 2018. If you don’t have an account yet, well, then now’s the time to sign up and take advantage of a great platform that keeps getting better. So let’s get right into it, shall we?
Overview
This news is music to the ears of Huobi customers and traders who use their platform as it comes hot on the heels of concerns of USDT collapsing.
This past week has been a very tumultuous one in the crypto space with mounting concerns that USDT, which is the current stable coin on Huobi and most major cryptocurrency exchanges, may not in fact be backed by actual dollars.
The panic came to a crescendo this past week as Bitfinex halted all major fiat deposits. This led to rumours and fears that Bitfinex is facing a banking crisis and may be insolvent. This also would mean that USDT, which is heavily backed by Bitfinex would implode, leaving people who currently hold USDT with heavy loses. In return, this led to more pance as people converted their USDT holding back to BTC causing the price to skyrocket.
This also led to a mad rush leading investors and traders to convert out to other stable coins like USDT which are currently more reliable like TUSD.
I too found myself worried holding holding USDT on certain exchanges and was quick to convert to TUSD in case of a USDT collapse.
This sentiment was echoed by others as well resulting in TUSD going to as much as $1.20.
Traders and investors on Huobi Pro, myself included, however, could not do this and had to transfer out to other exchanges and then convert to other stable coins.
Huboi was quick to respond to this situation and listen to what investors’ needs and found a way to find an answer soon.
The Answer: 4 New Stablecoins
While other exchanges found themselves fumbling for an answer and taking harsh measures like restricting trading, deposits and withdrawals and generally causing a lot of FUD, Huobi seems to be cool and level-heading.
Huobi is known to always have their customers’ interests in mind and came up with a great answer without the unnecessary worry and panic. Without stopping trading of USDT, Huobi will now also open deposits and withdrawals for TrustToken’s TUSD, Circle’s USDC, and two regulator-approved stablecoins: the Gemini exchange’s GUSD and Paxos’ PAX on October 19th.
**Let’s Take A Closer Look At Them **
Paxos Standard Token (PAX)
Issued by Paxos Trust Company and regulated by the New York State Department of Financial Services, Paxos Standard Token is a brand new digital asset which is fully collateralized by and redeemable one-to-one with USD. Paxos Standard will allow the participants who leverages advantages of the blockchain technology to trade with USD-endorsed and USD-denominated assets under the supervision of financial regulators.
Learn more about PAX at the official website: https://www.paxos.com/
TrueUSD (TUSD)
TrueUSD is a stablecoin backed by USD. Collateralized by USD, it can be exchanged with and trusted by multiple banking partners in legally protected escrow accounts.
Learn more about TrueUSD(TUSD) at the official website: https://www.trusttoken.com/
USDCoin (USDC)
USDC is a U.S. dollar-backed stablecoin issued by Circle and powered by CENTRE's open-source framework. USDC offers solutions with detailed financial and operational transparency and resolves the problems that exist in the current crypto market. It is operated within the regulated framework of U.S. money transmission laws with established banking partners and auditors. On the basis of open membership, any eligible financial institutions can join USDC.
Learn more about USDCoin(USDC) at the official website: https://www.centre.io/
Gemini Dollar (GUSD)
Issued by a U.S. digital asset exchange Gemini, the Gemini Dollar is the world's first regulated stablecoin approved by U.S. regulators. 1 GUSD = $1. The Gemini Dollar combines the creditworthiness and price stability of the U.S. Dollar with cryptocurrency technology and the oversight of U.S. regulars. As an ERC-20 token, the Gemini Dollar can be transferred on Ethereum network.
Gemini dollars are created at the time of withdrawal from the Gemini platform and redeemed or “destroyed” at the time of deposit into the Gemini platform.
Learn more about Gemini Dollar (GUSD) at the official website:: https://gemini.com/dollar/
My Favourite Pick?
When it comes to picking a top stablecoin, I go with trust over anything else. And the one coin out of the four that best embodies this and stands for trust is TUSD, of course. In fact, recently, I’ve converted all my USDT holdings to TUSD as i trust the company entirely and believe in the project after having done a lot of research. After all, there’s Trust right in the name! TUSD has multiple verifiable banking partners backing them through legally protected escrow accounts. This is the main reason that makes TUSD my top pick. That being said, all of the 3 other stablecoins are great too with their own great benefits. TUSD is just my personal favourite, though.
More Stablecoins = More Choice + More Stability
By enhancing their offering and adding more stablecoins, Huobi has helped alleviate the concerns surrounding USDT and give users more choice than ever. More choice means more options means more peace of mind means a happier trading experience. Earlier, with just one stablecoin in the form of USDT, many users including me felt restricted. Also, relying on just one coin can cause panic and stress in the event of something going terribly wrong which was the case recently.
However, it is also quite important to note that some of these stablecoins have a relatively small circulation which cannot support transactions of a large amount. In the event that you find yourself in this predicament, then Huobi comes to the rescue yet again!
If you are an institutional traders, acceptance dealers, or OTC market trader, all you need to do is contact Huobi directly and they’ll be at your service in a jiffy. Just mail them at institution@huobi.com with the subject “Stablecoin Cooperation” and their awesome customer service will guide you along to making your experience a whole lot smoother by providing you with all the assistance you need.
Disclaimer: The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. For the avoidance of doubt, this article is solely intended to be for general information only and does not in any way constitute as professional advice or financial advice. This is not an invitation or an offer to buy or sell cryptocurrencies, nor is it a recommendation to buy or sell specific types of cryptocurrencies. Trading cryptocurrencies carry a high level of risk that may not be suitable for some. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice.
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