Singapore based Huobi Crypto Exchange made a new and bold move by putting its whole organization on the blockchain. It is planning to build first public and decentralized blockchian and investing 30 million Huobi Tokens worth about US$174 million.
On Wednesday, crypto exchange, Huobi announced that it is allocating Huobi Tokens of 30 million to fund in the developing its own open sourced blockchain protocol. In the scenario of public blockchain, where Bitcoin and Ethereum operates in which anybody can add new blocks as there is no central entity that owns and controls.
Leon Li Lin, founder and CEO of Huobi Group said,
“We firmly believe in a decentralized future and the main goal of the Huobi Chain project is to transform a centralized corporation to a decentralized. Our dream is for Huobi to run on the public blockchain and become a truly decentralized autonomous organization”.
The Huobi states at a press conference in Singapore, the 30 million fund will be used to launch the Huobi Chain Project. Since it is aiming to build decentralized autonomous organization (DAO) based on blockchain. However, after completing its new blockchain project, the company will move its crypto operation to the platform.
The director at the Huobi Group ecosystem development arm, Chen Guang explained that blockchain platform will help user to participate in ICO events and also to vote for tokens that should be listed on Huobi. Chen believes that the future of blockchain ecosystem must be a combination of both decentralization and centralization.
“We want this to be a social experiment. The future is not likely to be entirely decentralized. As such it’s important to find the equilibrium that balances the two polars. Thus, which is the ultimate goal of this exploration”.
Furthermore, the development process of Houbi chain project undergoes 8 months of time period along with 8 different phases. Accordingly the firm is inviting developed across world to participate in creation of new public blockchain.
In order to explain the process, the committee has been established by the company to modify the policy and self- regulatory framework for the competition.
Chen confirms that the process is in talk with 10 well known leaders from open source blockchain who might help in forming the committee. Since, Chen has declined to reveal the names of those top 10 leaders.
Further the committee will nominate a list of candidates for Huobi Chain Project. Lateron the users will jointly vote for preferred candidate using their Huobi token. Thus, the highest voted candidate will the lead the development of project as well fund allocation at every phase. Therefore, the exact amount of funding is still not fixed as it might increase based on the project’s progress, said Chen.
Recently, Huobi revealed it new partnerships with blockchian based investment firms called NewMargin Capital and Kiwoon Securities. However, the target of fund is aiming at $93 million will be investing in Blockchain startup. With the intention, the Huobi’s partnership is to encourage and increase blockchain adoption and alliance between both countries.
The crypto trading platform has also announced a crypto exchange traded fund (ETF). It allows retail investors to attain exposure to more assets at a time. Therefore, the new investment option called HB10.