Babel Finance Launches Stablecoin to Repay Debtors: HOPE is Here

7. March 2023 / admin / 0 Comments

  • Babel Finance Proposes New Stablecoin to Repay Debtors: Babel Finance, a crypto lending platform located in Hong Kong, wants to develop a decentralized stablecoin that will be used to repay the firm’s debtors. A completely reserved stablecoin dubbed HOPE and another token dubbed Light Token are proposed as part of a dual-token ecosystem.
  • Crisis After Series of Collapses: Babel Finance received $80 million at a $2 billion value in May 2022 but froze redemptions and withdrawals the following month due to liquidity challenges. 8,000 Bitcoin and 56,000 Ether valued at around $225 million were allegedly lost by Babel exchange.
  • Restructuring Efforts Led By Yang Zhou: Yang Zhou is now the company’s sole director and is at the heart of restructuring efforts which center on a decentralized finance (DeFi) initiative named “Babel Recovery Coins”.

Background Information on Babel Finance

Babel Finance is a crypto lending platform located in Hong Kong which aims to develop a decentralized stablecoin that will be used to repay the firm’s debtors. The company received $80 million at a $2 billion value in May 2022 but then froze redemptions and withdrawals the following month due to liquidity challenges. 8,000 Bitcoin and 56,000 Ether valued at around $225 million was allegedly lost by Babel exchange. To address these issues, Yang Zhou has been appointed as the company’s sole director and is now leading restructuring efforts.

Proposed Dual-Token Ecosystem “Babel Recovery Coins”

As part of the restructuring plan, Babel proposes launching a dual-token ecosystem called “Babel Recovery Coins”. This includes two tokens – HOPE (a completely reserved stablecoin) and Light Token – that aim to generate revenue for repaying creditors over time. Initially HOPE will be backed by Bitcoin (BTC) and Ethereum (ETH), with other currencies added later on.

Moratorium of Protection with Singapore High Court

To prevent its creditors from taking further action against it for up to six months, Babel decided to seek moratorium protection from Singapore High Court asking for their help.

Conclusion

Babel Finance faces major liquidity challenges due to its high-risk trading strategies used by co-founder Wang Li who has been removed from his position as head of the company in December last year. The proposed dual-token ecosystem “Babel Recovery Coins” aims to generate revenue for repaying creditors over time through its two tokens – HOPE (a completely reserved stablecoin) and Light Token – initially backed by Bitcoin (BTC) and Ethereum (ETH). Additionally, they have asked for moratorium protection from Singapore High Court asking their help in preventing its creditors from taking further action against it for up to six months.