Huobi BTC
Crypto Overview
Overview and Intended Utility
Huobi BTC (HBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain. It was created by Huobi Group, a major cryptocurrency exchange, with the primary purpose of bringing Bitcoin's value and utility to the Ethereum ecosystem. Each HBTC token is backed 1:1 by actual Bitcoin held in custody by Huobi Group.
Business Model and Actual Usage
The business model involves users depositing Bitcoin with Huobi, receiving HBTC tokens in return, which can then be used within Ethereum's DeFi ecosystem. The custody service maintains transparency through regular proof-of-reserves and third-party audits. The actual usage aligns closely with its intended purpose, primarily being used in DeFi applications and as collateral in various Ethereum-based protocols.
Token Distribution and Governance
The token supply is directly correlated with the amount of Bitcoin held in custody. New HBTC tokens are only minted when users deposit Bitcoin, and tokens are burned when users redeem their Bitcoin. This creates a transparent and verifiable system where the token supply is always backed by real assets.
Development and Platform Activity
The platform maintains active development primarily focused on security improvements and maintaining the bridge between Bitcoin and Ethereum networks. The project demonstrates consistent technical updates and security audits, showing commitment to its core functionality rather than marketing hype.
Crypto Impact
To assign a comfort level investing in Huobi BTC from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Huobi BTC.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.