Tether Becoming More Centralized After Freezing $160 Million Across 3 Addresses – is HUH the New Alternative?
Tether froze $160 million worth of assets across 3 Ethereum-based addresses this week, according to its representatives. The stablecoin stated that they had acted upon a “request from law enforcement”, due to suspicious activity across the addresses. However, investors won’t perceive this as a shock – Tether has a reputation for freezing accounts, having frozen 563 addresses since November 2017. On the basis of Tether’s disrepute in this area, we’re surprised they hadn’t marked their first blacklisting of 2022 sooner.
Although they might appear favorably in the eyes of the law, Tether’s tendency to freeze accounts is becoming problematic. For this reason, the stablecoin is being attacked in the crypto world, amid growing concerns that it’s becoming less decentralized. Despite Tether previously recovering stolen funds this way, the central idea behind using crypto is to gain more autonomy over one’s finances and taking away control typically associated with traditional organizations such as banks. Tether therefore contradicts the beauty of digital currency by freezing accounts upon governmental demand.
Another point to note is that Tether’s headquarters are in Hong Kong, meaning they most likely acted on behalf of Hong Kong law enforcement, as per their statement. Only several months ago, protests gathered in Hong Kong following the government’s introduction of an amendment bill on extradition. The protestors were met with violence and brutality from the police force in response to exercising their democratic rights. This begs the question – should Tether really be complying with law enforcement with such a history?
Coupled with that, stablecoins have recently faced intense scrutiny by US regulators. As crypto enters the mainstream, governments across the globe are seeking greater power over the crypto sector. CBDCs are being piloted in various countries while the US discuss regulating stablecoins “to mitigate risks” to users. Again, defeating the reason why people started using crypto in the first place.
Tether is one of the most famous stablecoins, fast approaching a market cap of $80 billion. However, news of Tether freezing 3 addresses today may be why its value slightly declined, despite being backed by the US dollar. It’s since recovered, for now…
Luckily, the crypto market is evolving, and bigger and better altcoins are being launched every day. One newcomer, HUH Token, implements a decentralized autonomous organization (DAO) to ensure true freedom and autonomy to users. So, will Tether investors start flocking to HUH in search of a digital currency with Satoshi Nakamoto-like values?
First and foremost, Ethereum describes DAOs as communities led by its members rather than by a centralized authority. Likewise, DAOs are said to be a secure way to collaborate with strangers over the Internet and a secure location to fund a specific cause. Ethereum highlights the necessity of DAOs in the crypto world as transactions and investments require trust that you simply can’t get over the Internet, as it’s the easiest place to deceive someone. Thus, DAOs don’t entail trusting the group, but its code – which is fully transparent and verifiable.
HUH is governed by DAOs named ConSenseUs (CSU), according to its White Paper. HUH utilize a ‘new consensus strategy’. At the cost of increasing complexity, the quality of votes goes uncompromised. When the HUH community deems appropriate, HUH DAOs may use traditional Plutocracy, Meritocracy, and Democracy consensus procedures as a fallback option to obtain speedier solutions. A constitution and an entity presentation document are the bare minimum for a HUH DAO to be born. HUH entities (HUH DAOs, users, or federations) will be able to create HUH DAO artefacts with the help of the HUH DAO development kit.
Furthermore, most DAO voting processes will be subjected to a vote quality evaluation for HUH entities seeking to participate in HUH governance. The quality of a vote will be initially characterized as a bi-dimensional feature based on the voter’s consciousness level on the subject under voting, as well as the relevant knowledge domains, and the voter’s frozen stake.
If this takes your fancy, join HUH today:
Website: https://huh.social
HUH Official Swap- https://swap.huh.social/
Telegram: https://t.me/HUHTOKEN
Twitter: https://twitter.com/HuhToken
Instagram: https://www.instagram.com/huhToken/