Haven (XHV) Stablecoin Reported As Exit Scam, Developer Responds to Claims

Rumors that Haven (XHV), a Monero-forked hybrid type of stablecoin, was an abandoned project and perhaps even an exit scam hit crypto social media yesterday (Jan 21), as the project’s non-critical team members publically decried the founder and sole developer’s lack of presence.

Haven was one of the most impressive gainers of late 2018, logging a nearly 8,500% increase in price agianst bitcoin between October 1 and November 13.

havenPrice.png(source: Coinmarketcap.com)

The (non-critical) Haven team member admissions that sparked concerns occured on the project’s Discord channel. Admin “news.cutter” complained that the project founder, “havendev,” had become unresponsive after requests to open the Github repository, to which he alone has access. News.cutter also complained that the developer fee - a portion of the reward for mining blocks - should be transparent. He vowed to leave, even if havendev were to return.

chat1.png(screengrab from Discord)

Another team member agreed with news.cutter but expressed his hope that the project could be forked and live on:

chat2.png(screengrab from Discord)

In the face of the kind of fear-uncertainty-and-doubt (FUD) common in the cryptoasset industry, havendev reappeared at the eleventh hour to assert that the project is not in fact a scam. He vowed to open up the code to the community, and said he had been working on it during his period of absence.

chat3.png(screengrab from Discord)

Clearly only time will tell what precisely the situation is. But whether or not the project is truly dead or a scam, it is clear to see on the project’s Github page that development activity has dropped off sharply of late.

commits.png(source: Github.com)

Haven - What is it?

Haven’s motto, according to its (extremely sparse) whitepaper, is “Untraceable transactions meets offshore banking.” It is essentially an algorithmically-backed stablecoin, perhaps similar to the Maker/DAI project. The whitepaper explains that “Users can mint and burn Haven [XHV] for the equivalent USD value worth of Haven Dollars [XHVD].”

The goal of this scheme, the paper states, is to put “a Swiss bank account in your back pocket.”

This is not the first time that doubts have plagued the Haven project. Last year, Haven was somewhat infamously associated with a series of leaked messages exhibiting an alleged pump-and-dump scheme, in which crypto influencers used social media to direct followers’ interests to certain coins that they had already invested in.

CryptoGlobe reported last year that this particular group was reported to the US Federal Bureau of Investigation and Securities and Exchange Commission by the leaker.

Coinbase Makes Stablecoin USD Coin (USDC) Trading Available in 85 Countries

On Tuesday (May 14), digital asset exchange Coinbase announced that it had expanded support for USD Coin (USDC) crypto trading in both Coinbase Consumer (Coinbase.com) and Coinbase Pro to 85 countries.

This is how Coinbase announced the news today (at 14:06 UTC) on Twitter:

As CryptoGlobe reported on 26 September 2018, "USDC Coin" (USDC for short) was launched on that day by Goldman-funded FinTech startup Circle Internet Financial (better known as "Circle"). This is a regulated fully-collateralized dollar-backed stablecoin that was originally announced on 16 May 2018. USDC is based on an open source fiat stablecoin framework developed and governed by the CENTRE project.

Circle said at the time that the problems with existing fiat-backed solutions (such as Tether's USDT) were that they "have lacked financial and operational transparency, have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies."

In contrast, Circle's USDC stablecoin deals with these issues by "providing detailed financial and operational transparency" and "operating within the regulated framework of US money transmission laws, reinforced by established banking partners and auditors." USDC tokens are ERC-20 compatible (meaning that they run on the Ethereum blockchain); they are minted, issued, and burnt/redeemed based on network rules defined by CENTRE. 

Then, on 23 October 2018, Circle announced that Coinbase (another member of the CENTRE consortium) was making USDC available to its customers on Coinbase Consumer and Coinbase Pro, and that customers could "tokenize dollars into USDC and redeem USDC into dollars through both Circle and Coinbase."

In a blog post titled "Expanding USDC crypto trading globally", Coinbase said that:

  • It was making USDC trading available on Coinbase Consumer and Coinbase Pro in 85 countries.
  • It was doing this to help "accelerate the global adoption of crypto trading" and to provide wider access to "a stable store of value."
  • There are more than 300 million USDC tokens currently in circulation today, and that USDC is supported by 100+ ecosystem partners.
  • Stablecoins "have the potential to materially improve the lives of people in countries where inflation is eroding wealth." It mentioned Argentina and Uzbekistan as two examples of such countries.
  • Coinbase serves customers in 103 jurisdictions, 50 of which were added today: 

    Angola, Armenia, Aruba, Bahamas, Bahrain, Barbados, Benin, Bermuda, Botswana, Brazil, British Virgin Islands, Brunei, Cameroon, Cayman Islands, Costa Rica, Curaçao, Dominican Republic, Ecuador, El Salvador, Ghana, Guatemala, Honduras, Jamaica, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan, Macau, Maldives, Mauritius, Mongolia, Montenegro, Namibia, Nepal, Nicaragua, Oman, Panama, Paraguay, Rwanda, Serbia, South Africa, Taiwan, Trinidad and Tobago, Tunisia, Turkey, Uganda, Uruguay, Uzbekistan, and Zambia​

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