Algorithmic stablecoins like HBD are the only way forward
Direct from the desk of Dane Williams.
With Tether freezing millions of dollars worth of USDT, algorithmic stablecoins like Hive Backed Dollars are the only way forward.
Stablecoins are going to be the biggest talking point within the crypto industry in 2022.
The US regulator has realised that there is no point in trying to regulate conventional cryptocurrencies like Bitcoin.
But in saying that, US backed stablecoins are a whole other kettle of fish.
Watch out collateralised stablecoins, the SEC is coming for you.
The LeoFinance community has already started the year with its finger on the pulse, putting a focus on stablecoins.
Tether are already freezing funds
But after reading news that Tether keep freezing addresses with millions of USDT, I’ve gotta ask the question again.
Why would you use Tether as your stablecoin of choice?
Here it is straight from the horse's mouth:
When contacted, a Tether spokesperson declined to share those details to maintain the owner's privacy but said Tether regularly works with regulators and law enforcement agencies worldwide, including on any cases related to hacks and scams, for freezing addresses.
And that’s before we even go down the rabbit hole of whether USDT even has the 1:1 collateral behind them that Tether promises us exists.
Sure, you’re not a criminal and you didn’t flog those funds so there’s probably nothing to worry about.
If you’re straight, they probably won’t come after your money.
But just like when it comes to being censored on traditional social media, the only thing that matters is that a centralised entity has the ability to freeze your funds at all.
If you’re a business or any sort of serious investor, parking your crypto in USDT is a risk that you simply can’t afford to take.
Algorithmic stablecoins are the only way forward
The entire market is going to wake up to this fact sooner rather than later and truly decentralised, algorithmic stablecoins are going to be the only answer.
When it comes to stablecoins of this nature that run on truly decentralised, permissionless networks, there aren’t many alternatives.
Enter Hive Backed Dollars (HBD) - The Hive Blockchain’s very own trustless, algorithmic stablecoin.
Supported by the Hive network’s ability to convert HBD into $1 USD worth of HIVE at any time, they provide a trustless solution to the soon to be highly regulated stablecoin space.
No questions asked, 1 HBD can always be converted into $1 USD worth of HIVE.
All via a Web3 Hive account that you retain full access to via your private keys, on a fully decentralised blockchain.
Move into HBD with a Hive account
Algorithmic stablecoins are the future and if you intend on retaining USD denominated capital inside the cryptosphere, then HBD is the smart choice.
You can permissionlessly buy HBD from the blockchain’s internal market with a Hive account today.
Simply use your current Web2 social media account to onboard yourself into Hive’s Web3 ecosystem.
Head to leofinance.io, click the get started button at the top and create your Hive account using your Twitter login.
Stop taking a risk on Tether.
Best of probabilities to you.
Posted Using LeoFinance Beta
https://twitter.com/forexbrokr/status/1479743338240638978
The rewards earned on this comment will go directly to the person sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.
I was thinking of the exact thing and published something along these lines today as well.
https://leofinance.io/@belemo/the-curious-case-of-hbd-algorithm-decentralised-and-unknown
Posted Using LeoFinance Beta
Cheers Belemo, I'm loving all the HBD focused content that we're starting to see on LeoFinance.
The community is finally seeing the value of our own truly decentralised, algorithmic stablecoin and the potential it has to take the price of HIVE higher.
I'll drop by and add my thoughts on the blog you've linked today :)
Posted Using LeoFinance Beta
Yes, the nature of HBD is superb and distinct unlike USDT, BUSD and the sorts.
But, I think HBD is still quite unstable. This in some ways could hinder its adoption by the outside world.
You're right, long-term HBD needs to stabilise at its peg closer than the 90c-$1.10 range we currently see.
At the moment, I like to call HBD a stable-ishcoin haha.
But remember, even if the market has HBD priced at 90c, it is still ALWAYS worth $1 of HIVE.
The blockchain ensures this.
Either way, more exchange listings and development will add to the arbitrage opportunities available and subsequently help to stabilise price.
It's coming :)
Posted Using LeoFinance Beta
Glad to know that those listings are coming. It's important because then a wider matket will trade HBD! In turn, we may see the stability we're gearing for
Posted Using LeoFinance Beta
I think algorithmic stable coins also has issues but at least we can see the code. I remember the IRON hack or issue and how that ended up having Mark Cuban ask for regulation.
Posted Using LeoFinance Beta
Do you trust the code or do you trust Tether?
It really should be a no-brainer.
The IRON hack that Mark Cuban lost money in is completely different though.
IRON's code was exploited, but was there to see if he had done his due diligence.
Hive's code behind HBD however, can't be exploited in the same way.
Posted Using LeoFinance Beta
We are still in the beginnings of HBD as an algo-stablecoin. I wish many would hop in now, or maybe when savings interest start paying 30% APY.
Posted Using LeoFinance Beta
https://leofinance.io/threads/@forexbrokr/re-taskmaster4450le-menys4f7
The rewards earned on this comment will go directly to the people ( @forexbrokr ) sharing the post on LeoThreads.