Huobi, the third largest cryptocurrency exchange on the planet, has announced the launch of its own blockchain. The announcement comes days after the company launched a crypto-based exchange-traded fund (ETF) called ‘Huobi’ just ten days ago. Using the fund, ‘Huobi’ will be able to divide ownership of underlying assets, turning crypto assets into shares.
The Multi-Million Project
The company has come out swinging again with a blockchain project dubbed the Huobi Chain Project (HCP).
Huobi will invest 20 million of its tokens (USD $100 million) into the Huobi Chain Project with the company getting all set to migrate its operations onto its independent blockchain. The project will take 21-months to complete which will be divided into ten different milestones.
According to the founder and CEO of Huobi Group, Lin Li, once the program is finished, they will gradually migrate Huobi onto the new blockchain and all the codes will be made open source, so that everyone can join and participate. “We believe in the decentralized future where some form of autonomous organization will replace corporations today,” Gordon Chen, a Huobi senior executive leading the project, told Reuters.
To make this dream come true, the company will have to commit a percentage of its revenue moving forward to fund the project, a commitment that the company executives say they are ready for.
“Huobi wants to make history and lead this transition. We see this as a grand experiment. We also think this new world needs a new financial infrastructure, which is what we are hoping Huobi Chain will be,” the senior executive added.
Once the blockchain work is completed, the traditional management structure will be replaced with a code-made organization, created out of self-executing smart contracts.
The company was founded in 2013 and now serves over 5 million users in 130 countries. The year began is stellar fashion for Huobi, when the company launched its token sale in January raising USD $300 million. In May, the company launched a USD $1 billion blockchain fund to channelize investments into companies using blockchain technology.
Huobi is currently ranked as the third largest exchange on the planet based on trade volumes, with the company currently trading over USD $1.12 billion every 24 hours. The company has invested in several crypto based businesses including digital asset exchanges, mining pools, blockchain research and incubators.
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