HUSD
Crypto Overview
Overview
HUSD was a USD-pegged stablecoin initially issued by Stable Universal Limited and supported by Huobi Global exchange. The token was designed to maintain a 1:1 peg with the US Dollar.
Current Status
As of late 2022, HUSD has been effectively shut down. The token lost its peg to the US dollar in October 2022, and Huobi Global announced the delisting of HUSD. The token's value has collapsed to near zero, and the project is now defunct. Stable Universal announced they would assist users in redeeming remaining HUSD tokens for USD through designated channels.
Original Purpose and Utility
HUSD was created to serve as a stablecoin for trading on the Huobi exchange and other platforms. It aimed to provide a stable medium of exchange and facilitate trading pairs on cryptocurrency exchanges.
Business Model Analysis
The business model involved maintaining USD reserves to back the stablecoin's value. While the basic concept of a stablecoin doesn't inherently conflict with Islamic principles, the project's sudden collapse and loss of peg raised serious concerns about its management and transparency.
Development and Usage
Prior to its collapse, HUSD had significant trading volume on various exchanges, primarily Huobi Global. However, development activity was minimal, and the project lacked transparency regarding its reserves and operations.
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.