Haven Protocol (XHV) Review & Analysis – Haven Protocol Review

Haven Protocol

Be Your Own Offshore Bank

About Haven Protocol
Buy XHV

Network Token

Haven Protocol is an ecosystem of multiple fully decentralized and private stable coins that can be stored in a Haven wallet which can be seen as a private and decentralized multi-currency bank account for everyone.

Price-stability of all stablecoins (e.g. XUSD) is achieved without an unsustainable peg or asset backing. Instead it is achieved with an algorithmic dual coin blockchain. Third party trust from banks or centralized entities is therefore unnecessary.

Users can convert each Haven Dollar (XUSD) into $1 worth of XHV and vice versa within a Haven wallet at anytime. A cryptographically unknown but fluctuating supply of both coins allows the burning (destruction) of one coin and the minting (creation) of the equivalent amount of the other coin (e.g. 50 XUSD <–> $50 worth of XHV). The same process will apply to all stablecoins in the Haven ecosystem (e.g. 1 XEUR =1€ worth of XHV).

A Fork of Monero – Haven is a fork of Monero, therefore inheriting the stealth and anonymity that it’s famous for. Haven also has the benefit of starting the blockchain from scratch with RingCT for extra privacy. Further, Haven’s Offshore Storage means privacy conscious individuals can keep their money in an untraceable currency without being subject to market fluctuations.
Offshore Storage – Offshore Storage is Haven Protocol’s core concept that powers the minting and burning of Haven [XHV] for Haven Dollars [XUSD] and vice versa. In short, sending Haven [XHV] to Offshore Storage (burning), mints the equivalent USD value worth of the burnt Haven [XHV] in Haven Dollars [XUSD]. This balance never leaves the Haven blockchain and as such remains completely untraceable and un-linkable to the user.
A Two Coin System – Haven Protocol’s cryptographically unknown supply is used to facilitate the fluctuations in the total supply when users burn Haven [XHV] to create the stable value Haven Dollars [XUSD], while allowing Haven [XHV] to be exposed to the natural price movements of the market.

“Haven is a digital wallet that can be seen as a free private multicurrency offshore bank account. Haven allows you to store & transact money securely, anonymously & untraceably while it retains it’s value in the currency (e.g. US Dollar) you want. Haven is decentralized which means it requires no trusted third parties and no central bank to store & transact money.”

Positives

Haven Protocol provides users with what we would call “the perfect privacy coin”. While other privacy coins are subject to wild fluctuations in price depending on market conditions, Haven Protocol provides it’s private, untraceable stablecoin model which currently allows users to “mint” XUSD, XEUR and XCHF which are 1:1 equivalents to the obvious currencies (more currencies to be released). By employing a 2 coin system, users who mint these stablecoins don’t have to worry about price fluctuations in the “parent coin” XHV to cash out or trade back into the markets. You mint $100 worth of XHV into the stablecoin of your choice and no matter the change in value of XHV in the future, you’re at no loss (or gain) when you decide to enter back into the market and/or cash out into fiat. We call this the perfect privacy coin because it’s as close as it can be to providing users with real currency while being completely untraceable through Ring Signatures and other privacy protocols. Perfect for keeping your riches from the eyes of “big brother” to an extent.
Keeping large amounts of funds in traditional stablecoins such as Tether has always been considered to be a big risk. Tether relies on a centralized party having the exact amount of cash in a centralized bank which obviously requires constant monitoring and auditing. We’ve all seen the controversy following Tether since its inception and it’s not going away anytime soon. Trusting a third party to keep your money safe is what Bitcoin was designed to avoid, going backwards doesn’t make sense. Haven Protocols 2 coin system means that through minting backwards and forwards into XUSD and XHV, the demand for both of these coins is kept in check. Haven Protocol doesn’t keep your cash safe, an incredibly simple yet well thought out algorithmic token model does.
While we’ve got our concerns about the potential use-cases of Haven Protocol in terms of real world usage in (for instance) commerce, using XUSD provides users a fool-proof way of transacting peer-to-peer with complete privacy/safety. Lets admit it, if you want to buy something that may not be completely “legal” or you want to keep your purchase under the radar for whatever reason, you probably don’t want to wire fiat to each others bank accounts. On the same note, you could use Bitcoin or Monero, but if the seller receives your BTC/XMR and the market dumps, the seller is obviously left with less profit and has to have faith that the market will make the transaction profitable in the future. (Ask any seller who accepted BTC at the top of the bull run in 2017). Transacting via XUSD or any of the other available Haven Protocol Stablecoins ensures both parties are aware of the equivalent fiat amount they’re receiving and can be assured that their funds won’t fluctuate in price.
Haven Protocols Roadmap has a lot of exciting milestones coming up. Aside from scheduled code audits (which is awesome), we can expect to see Bulletproofs integrated sometime in Q4 2018 along with Offshore storage following shortly afterwards. XUSD will be listed on exchanges sometime in Q1 2019 which will open up a huge range of opportunities for people who wish to trade privately on various exchanges. Over the next 4 months we can expect to see another 5 private stablecoins introduced which will open up the network even further. Plenty to look forward to here and plenty of catalysts for potential increases in XHV value. It’s worth noting here that we’re not completely sure how enabling XUSD pairs on exchanges will effect the price of XHV considering you wouldn’t have to mint back into XHV to get back into the market, maybe it will still convert on the exchange side? not sure. We’ll edit this once we get confirmation on how this will work.
Haven Protocol isn’t attempting a whole lot, and that’s not a bad thing at all. While we’ve got plenty of privacy coins implementing Smart Contracts, Decentralized Applications on their platforms, PoS and other various features, Haven sticks to old fashioned hard Proof of Work and is solely concerned with allowing users to store and transact money in a private way. Very excited to see how Haven Protocol develops as their Roadmap progresses.

Concerns

Now in our “Positives” section we do point out several reasons why private stablecoins are perfect for transacting in, well, private. We’d like to take two of the use-cases in the Haven Protocol Whitepaper and point out a few reasons why we think Haven Protocol will be halted or slowed down a bit when it comes to adoption. In regards to Point of Sale and Payment Gateways, we’ve got to point out the obvious. Governments do not and will not allow stores, shops, sole traders, etc to continuously sell goods or services without paying a tax. Regardless of where you’re keeping your money or what you’re doing with it, the fact that you’re operating a business and transacting in their country/state will be enough for them to look into you. Yes, it’d be awesome if you could accept XUSD (for instance) and quickly shuffle it over to your Offshore Storage but the hard fact is the Government will want their cut. It’d be very foolish to attempt to “hide” this from them at risk of being fined. Similarly, storing large amounts of money “offshore” would attract the same attention assuming that one day you’ll want to cash it out and spend it. Governments will always be watching and wanting their cut. This isn’t Haven Protocols fault at all, just something that all Privacy Coins inherit when it comes to real world usage. It’ll be interesting to see what action Governments take when/if privacy coins start to be used for everyday transactions. Watch this space.
The team is suitably anonymous seeing as Haven Protocol is fully committed to privacy. Some investors may be put off by the lack of team details (No LinkedIns, Crunchbases, etc) but investors should know that Haven Protocol never held an ICO or a token sale, there was a pre-mine fund for the developers but everything else is being mined through nothing but good old hard proof-of-work. The Team is always readily available to answer questions so transparency isn’t an issue which is the main thing. Their Github is always kept pretty open and active so you can check the development progress yourself.
No other concerns here. You’ll see some concerns floating around social media regarding the lack of a Total Supply of XHV but if you’ve read this review, it’s necessary to the platforms function. If you’re looking for a red flag or major concern, you’ll be hard pressed to find one. Solid project and one that could be extremely popular in the future.

Price Predictions

Please note: This Price Prediction section was a feature voted on by our community on Twitter. We do not stand by any of the following statements, we are merely speculating. We have been known to be pretty bullish on most projects we review, so take our predictions and DYOR.
As always, we like to take a step back and look at projects from a purely investment based perspective. XHV will no doubt see a ton of organic price growth through exchange listings and planned marketing in the future, any investments now would have a pretty good chance of appreciating from these catalysts, although any investment in such a new project comes with risk. Now sitting just under a $13m Market Cap after an incredible run from $0.40 to $3.20 in around a month (November 2018), XHV still has a huge amount of growth potential in the long term based on fundamentals. With the need for truly decentralized stablecoins becoming more and more prevalent due to uncertainty surrounding “USD Pegged” stablecoins that require actual fiat backing them, we feel like XHV is in a great position to absorb some of the market valuation. Now, onto everyone’s favorite, price predictions. Please keep in mind due to the lack of XHV price history (going back to May 2018), these are highly speculative guesses.
Short term (< 3 Months) We think XHV could be sitting anywhere from $3.00 to $5.00.
Mid Term (6 – 12 Months) we think XHV could be a stable $20 to $50, especially if the market turns around in the next few months.
Anywhere passed 12 months would be impossible to accurately speculate on but we’d be confident on a $100+ XHV in 1+ years, especially if we see stablecoins continue to rise in popularity. The current XHV supply is just under 6 Million (November 2018), so a $100 XHV would equate to a $600 Million Market Cap.
As with any investment into a low-cap project such as XHV, you absolutely must do your own research. We are by no means providing financial advice. Be smart!