Huobi Global’s stablecoin, HUSD, was originally linked to the cryptocurrency exchange Huobi Global. It lost its peg against the U.S. Dollar on Wednesday August 17 and fell even further the day after that. On Thursday, Huobi addressed the public on Twitter and the exchange said “we are aware of the current liquidity issues associated with the HUSD stablecoin.” Market data shows HUSD slid to a low of $0.827 per unit on Thursday.
22nd Largest Stablecoin USD Depegs Starting USD Parity
AUSD was the latest incident that occurred on August 14th. Another stablecoin tied to the U.S. Dollar has now fallen below USD parity. Huobi Global’s stablecoin, HUSD, lost 16% on Thursday, after falling to $0.827/unit. HUSD’s depegging problem started on Wednesday evening (EST) when the stablecoin slipped to $0.92 per unit.
Huobi Global explained to the public via Twitter that HUSD was experiencing liquidity problems on Thursday. “We are aware of the current liquidity issues associated with the HUSD stablecoin, which is issued by Stable Universal Limited and built on the Ethereum network,” Huobi wrote. “Huobi has always prioritized the safety of our customers’ assets, and will work together with HUSD’s issuer to find a solution and restore its stability as soon as possible,” the exchange added.
HUSD ranks #353 out of over 13,000 crypto asset markets capitalizations and is 22nd in stablecoin market values. The coin has a market cap of around $68,801,056 today, but there are 81,358,201 HUSD coins issued, showing a large discrepancy in it’s so-called USD value. Unverified reports detail that a Huobi community manager on Huobi’s official Telegram channel allegedly said: “HUSD is a stable currency issued by Stable Universal Limited” and “Huobi exited in April 2022.”
Stable Universal, with the help of the accounting firm Eide Bailly LLP, issued monthly attestations concerning HUSD’s backing. The web portal stcoins.com says HUSD is: “redeemed on a 1:1 basis against the U.S. dollar. It is designed to be easily redeemable and provides a tool for holders to reduce volatility when participating in the cryptocurrency market.” HUSD was first introduced in a blog post published by Huobi Global on October 19, 2018.
HUSD is currently above $0.903 per currency at 11:00 EST on Thursday morning.
Is it possible for HUSD to lose its relationship with the U.S. dollars? Comment below and let us know how you feel about the subject.
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