HonestCoin (USDH), A New Bitcoin Cash-Based Stablecoin Launches
- Stablecoins allow crypto investors to keep their value in digital assets that are, in most cases, pegged 1-to-1 to the USD or Euro.
- Stabelcoins protect user funds from the volatility of the crypto market.
- Honestcoin, a Bitcoin Cash-based stablecoin, has been introduced.
Bitcoin Cash-based Stablecoin, Honestcoin, Introduced
A few years ago, Tether (USDT) was the undisputed king of the stablecoins. In fact, it was one of the only successful stablecoins in the market before the crypto mania of 2017 started. Now, however, the token is getting more and more competition as the time passes and new challengers to the title of most popular stablecoin affirm.
Today, however, we are not going to talk about any token that you may have heard of. Forget USD Coin (USDC), the Gemini Dollar (GUSD), True USD (TUSD) and the others. Our highlight is a new token called Honestcoin (USDH).
What is so special about USDH? The token is also pegged to the value of the U. S. dollar (USD), as may have imagined, but its technology is based on the Bitcoin Cash (BCH) network, not Ethereum (ETH) or some other popular chain that is generally used for this kind of project.
According to CoinEx, which launched this new token, described it as the first fully regulated stablecoin to be issued using Bitcoin Cash and HonestNode. You can already deposit money on the company’s site in order to get your first tokens from this new stablecoin.
This way, you can create your own tokens instead of having to buy them. The more people mint tokens, the higher it will be the market cap of this new coin.
A Different Approach to Stablecoins?
Most stablecoins are used using either Ethereum, Tron (TRX) or Bitcoin’s OMNI layer. These are the most popular options and, since they work well, most tokens are based on them. This one, however, uses the Simple Ledger Protocol created by the Bitcoin Cash community.
Part of the reason why the company has decided to go for BCH instead of something more traditional such as ETH or BTC is that the company is known for being very friendly with BCH. CoinEx is based in Hong Kong and has several BCH trading pairs.
The BCH community obviously was very enthusiastic about this launch, as it gives some more legitimacy to the company, too.
Now, the biggest question is? Will this token change the stablecoin industry? Unless you are a BCH diehard, the answer will probably be no. Not even tokens from companies such as Circle and Gemini were able to take Tether down by now (and the company is so full of controversies and scandals, just read about the latest one with Bitfinex if you don’t believe) that this one doesn’t have a shot.