Former Babel Finance CEO Flex Yan announces launch of HOPE stablecoin
The former CEO of Babel Finance has announced the launch of a new stablecoin and related decentralized finance (DeFi) system.
Flex Yang left Babel Finance in October 2021 to pursue personal projects in the crypto industry, one of which became HOPE.
HOPE, which is pegged to the value of the US dollar, will initially use Bitcoin and Ether as collateral. Later, users will be able to purchase HOPE to interact with DeFi ecosystem applications.
According to media reports, some well-known investors have invested in the stablecoin project. Yang himself invested $10 million in the project.
The Hope DeFi ecosystem will be built on top of the Ethereum-based HopeSwap product.
In July 2022, The Block received access to proposals for the restructuring of the loan service Babel Finance. It turned out that the company lost 280 million dollars of client funds.
In March 2023, the collapse of Silicon Valley Bank (SVB) led to an unprecedented drop in the value of the dollar-pegged stablecoin USDC. Stablecoin company Circle burned nearly $3 billion worth of USDC. As a result, USDC returned to $0,97 after a sharp fall to $0,88. USDC was one of the first victims of the SVB collapse, as the bankrupt bank owned about $3,3 billion of Circle's assets. As a result, USDC lost its peg to the dollar for a couple of days.
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