There are plenty of crypto exchanges in the world, and some of them operate in the stablecoin system. As per the stablecoin system, cryptocurrencies are traded in stablecoin pairs, and Huobi (HT) is such an exchange—or rather, it was, until its most recent announcement.
The company has now announced that its HUSD token will no longer be used in the form of a stablecoin system; instead, it is going to be turned into an ERC-20 token. The ERC-20 token is going to be built in partnership with Stable Universal Limited and Paxos Trust Company, two startups in the crypto space. The press release in relation to this particular development was published on July 17.
Huobi has pointed out that the ERC-20 HUSD Token is going to be backed by the United States Dollar, and the token will be held securely by Paxos. Paxos is a company that is regulated by the New York State Department of Financial Services and, because of this, is 100% secure.
Last but not least, it is important to note that the token will be listed for the first time on the Huobi platform. The change in the system inside the Huobi exchange will take place gradually over the upcoming days. Stable Network will also be involved with third parties and create smart contracts.
Burning 14 Million Tokens
However, that is not all. Earlier on this week, Huobi (HT) had also announced that it was going to regulate the supply of Huobi Token by burning as many as 14,011,700 tokens. That being said, it is important to note that a burning event is a quarterly event that is performed by the company in order to keep the supply of the token stable.
At the time, when the burning was done, the total supply of Huobi Token stood at 310,318,300. The totality of the burned tokens, however, rose by as much as 116% from the previous quarter and the company attributed it to improvement in market conditions at this point.
Featured image: DepositPhotos © kentoh