Singapore-based Crypto Exchange, Huobi, to Open Office, Support Center in Russia

  • Digital asset exchange, Huobi, will open a new office in Russia.
  • Huobi's Russian language website will go live on November 12th, as it officially opens the office on the same date. 

Singapore-based digital asset exchange, Huobi, which is reportedly processing $1 billion in trades daily, has opened a new office Russia.

New Office, Website To Officially Open On November 12th

Huobi, which recently became a publicly listed company in Hong Kong, announced (during a St Petersburg conference) that it would officially open its Russia-based office on November 12th.

In order to make its services more accessible to the country’s residents, Huobi will be launching a Russian language website. Similar to Huobi’s other websites, the new site will have online support and a dedicated call center.

Presumably as an extension to its blockchain startup incubator program (Huobi Labs), Huobi will provide an online support center specifically for Russian firms looking to enter the crypto space.

Collaborating With Russia's "Top 10" Universities 

Notably, Huobi’s support center for Russian startups is being launched through a partnership with the Plekhanov Russian University of Economics (a “top 10” Moscow-based public research university) and the Moscow State Institute of International Relations (an academic institution run by Russia’s foreign ministry).

In September, Huobi had joined the Moscow-based VEB Innovation Fund - which is a venture capital-funded financial services platform that focuses on investing in “high technology projects.”

Founded in 2011, the VEB Fund aims to provide local startups the financial resources they need to develop their products.

Huobi Now Lists More Stablecoins

Established first in China, Huobi shifted its operations to other locations after the Chinese government began its crack down on cryptocurrency-related businesses. At present, Huobi has registered offices in Singapore, South Korea, London, San Francisco, Hong Kong, and Dubai.

Similar to how many crypto exchanges first started, Huobi only supported bitcoin (BTC) trading back in 2013. However, when crypto prices started to increase significantly last year, Huobi began listing more digital currencies on its trading platform.

After heightened fears regarding controversial stablecoin, Tether’s (USDT) operations, Huobi and many other exchanges have started listing other stablecoins. At present, Huobi lists the following USD-backed coins: Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD).

Huobi Accused Of "Mutual Voting"

In April 2018, Huobi Pro announced its plan to become a block producer (transaction validator) for the EOS platform. In October, a leaked document appeared to show that Huobi had been taking part in mutual and coordinated voting, when electing other block producers.

Although Huobi denied being involved in the incident, critics of the delegated proof-of-stake (DPoS) consensus mechanism (which EOS uses), such as Ethereum co-founder Vitalik Buterin, have said that “it was completely predictable [because] … human capacity for eternal vigilance is limited.”

Maker's MKR Token Has Risen 37% This Month, Outperforming the Crypto Market

  • MakerDAO loan payment system has performed well during extended crypto bear market.
  • This, according to market analyst, Sebastian Sinclair, who pointed out that MKR tokens are up 37% in value so far this month.

Ethereum-based token maker (MKR) has recently started outperforming the larger cryptoasset market - as MKR has recorded a 37% price rise so far this month.

Currently, MKR tokens are trading $534 after rising 3.4% in the last 24-hour period, and the market capitalization of the maker platform stands at $529.3 million - making it the 17 largest in the cryptocurrency space. On February 14, each MKR token was priced at 4.6 ETH, which is notably the token’s highest valuation since October 8, 2018.

At press time, MKR’s value against ETH has corrected back to approximately 4.16 ETH, presumably after some traders sold some of their holdings in order to take profits.

As explained on its official website, MakerDAO is a smart contract platform built on the Ethereum blockchain . The value of DAI, MakerDAO’s native stablecoin, is backed by ETH and it is also “soft-pegged” at a 1:1 ratio with the USD. DAI’s peg has been created via a system of collateralized debt positions (CDP). Functioning as a loan payment system, MakerDAO uses ETH as collateral, which is required for the governance of DAI in Maker’s ecosystem.

2% Of All ETH In Circulation Locked In MakerDAO Loans

So far this month, MKR’s value has appreciated considerably - when compared to its performance in previous months. According to Sebastian Sinclair, a market analyst and IT journalist, MKR’s recent price movements are a sign that the current bear market is “beginning to falter.”

Maker tokens are issued or burned according to DAI’s price movements - in order to maintain its peg. As Sinclair pointed out, the MakerDAO ecosystem has managed to perform relatively well during the prolonged crypto bear market - as 2% of all ETH in circulation is currently locked into MakerDAO loans.

At press time, over 1.97 million ETH have been locked up in Maker’s primary contract - which accounts for approximately 1.87% of over 104.86 million ETH in circulation. This figure is substantially higher than the 1% of ETH locked by Maker in November 2018. As Sinclair has observed, DAI is “overcollateralized” by over 200% (on average). This means that for every DAI that is issued, there is about $2-3 in ETH locked in CDPs. Because of this, when ETH’s value depreciates, more of that digital asset needs to be locked in Maker’s contracts - in order for DAI to remain collateralized.

MakerDAO Offers "Independent" And Competitive Interest Rates

Moreover, MKR tokens are used to cover transaction costs on the Maker platform and they provide investors with voting rights within MakerDAO’s “continuous approval voting system.”

Recently, MakerDAO’s management increased the platform’s stability fee from 0.5% to 1% - so that fluctuations in DAI’s price are reduced. This should (theoretically) help DAI maintain, or keep its peg close to the USD.

Commenting on the usefulness of MakerDAO, with its ability to offer “competitive” interest rates that are independent of the US Federal Reserve’s rates, Tanner Hoban, a former equity researcher and currently involved with ConsenSys, noted (via Twitter):