On June 2, William Je, founder of Himalaya Exchange, published an article regarding the perspective of the digital currency market following the collapse of the Terra stable coin.
In his article, Mr. Je stated that the collapse of Terra’s stable coin UST evaporated $45 billion in market value in just one week, which caused panic amongst the entire digital currency industry, and people began criticizing the digital currency as a Ponzi scheme. Mr. Ye said that a stable coin could reflect the value of the US dollar in two different ways. One is backed by hard reserves, while the other relies entirely on market activity and blind faith in algorithms. Terra UST is clearly a so-called calculated stable coin that cannot guarantee a 1:1 coupling to the US dollar, and its collapse could be anticipated. In contrast, HDO, the stable coin of the Himalaya Exchange, is truly fixed at 1:1 to the US dollar and its reserves consist of only US dollar assets and are regularly audited. Despite the recent digital currency shocks, HDO has always maintained a stable value against the US dollar.
Mr. Je believes that digital currency exchanges and investors must return to the three fundamental functions of a currency: a medium of exchange, a unit of accounting, and a storage unit of value. An Exchange needs to be a self-sustaining ecosystem. In the case of the Himalaya Exchange, it combines a stable Himalaya Dollar ‘HDO’, a native Himalaya Exchange Coin ‘HCN’, and a payment application, Himalaya Payment. The Himalaya Exchange was originally created to empower individuals with true financial freedom. Mr. Je stressed the collapse of Terra UST is not a threat to the digital currency market but rather an opportunity to reposition the future of digital currency investments. With coins of real value, a digital currency world will be able to engender complete trust and reliability for investors.