Huobi Exchange CFO Gives Notion of Creating Their Own Stablecoin This Year
This isn’t the only new development as its CFO also announced that Huobi will be expanding internationally and upgrading its platform.
“2018 brought us huge challenges but I’m personally optimistic about the crypto market. I do think we’ll see things get better this year,” Huobi CFO Chris Lee said, “This year will be huge for stablecoins and we will be a part of that. Likely Huobi Group will launch its own stablecoin in 2019 in the first half of the year.”
Huobi In 2019
2019 is already shaping up to be an interesting one for Huobi. They launched Huobi chat in early January, which acts as both a crypto wallet and a messenger app. The project is quite ambitious, aiming to get over a million users in the first 50 days of operations.
Back in December 2018, they launched their futures trading platform.
However, since the crash in bitcoin price, Huobi, like other exchanges, has seen some difficulty. One of their branches was shut down as well as certain departments such as news aggregation.
In total, it is estimated that at least 100 members of staff have been fired from Huobi in light of the bitcoin price crash. Even with this, they are in better shape than some other crypto-based firms such as Gigawatt who have been forced to close down operations.
The Stablecoin Dilemma
While the intended Huobi stablecoin will have a lot of support behind it given that Huobi is one of the top five exchanges in the world, stablecoins have not been without controversy since they came about.
On one hand, stablecoins have some level of security to them as a result of their being pegged to fiat currencies. This has made them an easy sell to investors who are not entirely sure of the cryptocurrency industry.
On the other hand, their validity has been questioned even by those within the industry. Some like Tether has been called out for potentially being a price manipulation tool which they have denied. In the case of Circle, they have had to prove that they truly have the fiat currency they claim in their possession.
Huobi’s stablecoin might be subject to the same scrutiny when it launches but with the backing of the Huobi Group and its users, it should be able to thrive.