Hoo Exchange To Debut Debt-To-Token Conversion Plan On Aug 1
- Hoo exchange, which recently paused withdrawals on the platform, has introduced a Debt-to-token conversion plan
- The company confirmed that it is currently experiencing a gap in its cash flow due to the current bearish market
Hong Kong-based crypto exchange company Hoo recently announced plans to introduce a Debt-to-token conversion plan as well as a partner investment plan with the aim of optimizing futures trading on its financial derivatives services.
Hoo, which aims to become the easiest exchange for users, is continuously iterating and adding new innovative services. However, the company is experiencing a gap in its cash flow amid the ongoing crypto winter weather, which has caused indirect or direct pain for multiple investment firms, lending platforms, and blockchain platforms.
According to the recent announcement, Hoo is actively interacting with several groups to reclaim the cash that “has been strewn about outside as quickly as [it] can.” The company explains its strategy to solve the problem:
“To fix the issue of cash withdrawal as quickly as possible, crypto exchange Hoo guarantees that user assets are not lost to the maximum extent feasible and resumes platform operations.”
Moreover, Hoo will also create a Debt-to-token conversion plan and a partner investment plan, along with optimize futures trading on financial derivatives.
By converting a portion of platform users’ existing crypto assets into an equivalent number of debt tokens, the debt-to-token conversion approach intends to give them access to free trading in the innovation zone and instant swapping at equal market rates. In addition to trading, users who own debt tokens can utilize the swap feature to convert their debt tokens into stablecoin IUSD (Investment USD) and participate in partner organizations’ investing business.
The company announced that the Debt-to-Token conversion plan will officially start on August 1, 2022. Moreover, the announcement reads:
“Every user transaction will be terminated as soon as the plan to convert debt into tokens is put into action. It is imperative that you promptly cancel any pending orders for your company and move all of your assets to the wallet in order to protect your company from financial damage.”
This means that Hoo will cancel all the users’ pending orders and will transfer all their assets to their wallets.
The company has decided to open the Innovation zone on August 5, after which the user’s debt token can be openly traded.
On the other hand, the new Partner Investment solution enables users to take part in Hoo Earn using their existing IUSD assets. They can unlock those holdings regularly and get a 200 percent increase in income. Through the Futures investment product available in the Hoo Earn Zone, users will also have the option to invest in IUSD.
The assets will be locked after the user IUSD engages in the Hoo Earn firm, and the timer will start the next day. Each day, 0.01 percent (basic ratio) of the invested amount will be unlocked to the connected wallet account. On August 8 and 15, Hoo will launch the Debt-to-IUSD and partner investment functions, respectively.
According to the announcement, Hoo aims to successfully complete the Futures system upgrade by August 15.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
