BUSD is being attacked by the Gov as per usual, so are many other stable coins what makes HBD different and is it a safer bet.
HBD (Hive Backed Dollars) is a stablecoin that is used within the Hive blockchain ecosystem, while BUSD (Binance USD) and USDC (USD Coin) are stablecoins that are more widely used across various cryptocurrency exchanges and other applications.
HBD is designed to be backed by a reserve of Hive cryptocurrency, which is held in a collateralized debt position, whereas BUSD and USDC are backed by US dollars held in reserve.
In terms of safety, HBD may be considered less susceptible to the risks associated with traditional fiat currency, as it is collateralized by a digital asset rather than a government-issued currency. However, HBD is still subject to market fluctuations and other risks associated with cryptocurrency investments.
BUSD and USDC, on the other hand, are more established stablecoins with a larger market share and greater liquidity. They are backed by US dollars held in reserve, which provides a higher degree of stability and security. BUSD is issued by Binance, while USDC is issued by a consortium of companies including Circle and Coinbase.
AS the SEC continues its attack in recent news,
US regulator orders crypto firm to stop minting Binance stablecoin
The US Securities and Exchange Commission (SEC) has expressed concerns about the use of stablecoins in the cryptocurrency market, particularly in regards to potential regulatory risks.
One of the main concerns the SEC has raised is that stablecoins may be viewed as securities under US securities laws, which would subject them to regulatory oversight and compliance requirements. This is because stablecoins are often backed by assets that are held in reserve, and investors may be purchasing these tokens with the expectation of receiving returns based on the performance of those underlying assets.
The SEC has expressed concerns that stablecoins may be used for illegal activities, such as money laundering or terrorist financing. This is because stablecoins can be used to transfer funds across borders quickly and anonymously, without the need for intermediaries such as banks.
IS HBD safe?