Cryptocurrency exchange Huobi seeks to become decentralized

Bitcoin, cryptocurrency & electronic finance

Huobi, one of the biggest cryptocurrency exchanges, wants to walk the talk.

The Singapore-based platform plans to invest $100 million toward building Huobi Chain. Once the project is complete, Huobi plans to migrate its operations onto this blockchain, according to a statement by the company.

Huobi wants to become a so-called decentralized autonomous organization, where traditional management structure is replaced with code and community based decision making, no third party is required to verify financial transactions and no central entity controls the entry of members on the network.

“By building a public blockchain, Huobi is migrating from a centralized corporation to a decentralized one that’s run by the communities,” the statement said.

DAOs have been a fixation for blockchain enthusiasts since at least 2013. While some projects have experimented with the idea, arguably the most famous one was a venture fund called The DAO, which raised $150 million in an initial coin offering in 2016 and lost $50 million after it was hacked. Losses were reversed in the following week in a decentralized bailout which caused the Ethereum blockchain to split.

Binance, the largest cryptocurrency exchange, said in March it also wants to launch a decentralized trading platform, which will co-exist with the centralized exchange. Decentralized exchanges, which need more computing power for many computers to verify and record trades, are often slower and have higher fees than centralized platforms.

Read: Binance Decentralized Exchange to List Almost Any Coin, CEO Says

The move is still in its early stages. Huobi just started recruiting for the team that will build the blockchain and plans for it to be live in about 18 months. The first step will be to migrate some of the decision-making processes to the network, for example, so the community can decide which tokens get listed on the exchange, said Gordon Chen, project director at Huobi. The plan is that, eventually, the exchange itself will be decentralized.

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Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.