The defoliation that started in the crypto money sector with the collapse of Terra-LUNA in May 2022 continued with the bankruptcy of many platforms.
One of the platforms affected by this negative weather was the Hong Kong-based crypto exchange Babel Finance.
Babel Finance, which stopped withdrawals in June due to liquidity pressures, made a new move to pay its creditors.
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According to Bloomberg’s report, Yang Zhou, co-founder and sole director of Babel Finance, said that they will issue a new stablecoin.
Believing that the new stablecoin can solve the financial crisis that Babel Finance is in, Yang Zhou said that together with a few former employees, they plan to launch a DeFi platform called Hope and a stablecoin of the same name.
In this regard, Yang Zhou plans to apply for a moratorium to the Singapore High Court.
Zhou is also asking creditors to approve the restructuring and hold no further transactions against the exchange for up to six months due to the new stablecoin and DeFi platform work.
According to the work of Zhou et al., the new stablecoin named “Hope” will be backed by Bitcoin (BTC) and Ethereum (ETH).
Some experts are concerned that the Hope stablecoin could have similar consequences to Terra USD (UST), which crashed the crypto market last year, as it will be backed by cryptocurrencies unlike rivals such as USD Coin (USDC) and tether (USDT).
*Not investment advice.