HUSD
Crypto Overview
Background and Intended Utility
HUSD was a USD-pegged stablecoin issued by Stable Universal Limited and initially backed by Huobi Global exchange. It was designed to serve as a stablecoin for trading and transactions within the cryptocurrency ecosystem, particularly on the Huobi exchange.
Actual Utility Assessment
HUSD has effectively ceased operations. In October 2022, Huobi Global announced the complete shutdown of HUSD and its delisting from their exchange. The token lost its dollar peg and crashed significantly, leading to substantial losses for holders. The stablecoin's market cap has dropped to near zero, with virtually no trading volume or practical utility remaining.
Token Distribution and Governance
The project's sudden collapse and the way it was handled raised significant concerns about the management and transparency of the stablecoin's operations. The rapid depreciation and eventual shutdown without proper communication or clear redemption mechanisms for holders demonstrated serious issues with the project's governance structure.
Technical Implementation
HUSD was an ERC-20 token on the Ethereum blockchain. While the technical implementation itself was standard, the project failed in maintaining its core promise of stable value and reliable redemption mechanisms.
Crypto Impact
To assign a comfort level investing in HUSD 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 HUSD.
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.