Huobi Global’s announcement that the stablecoin HUSD would be removed from the market and customers will now automatically convert their balances 1:1 using tether tokens has caused a significant drop in stablecoin assets, dropping to $0.72 per unit.
HUSD Still Below $1 Peg
A second stablecoin has been struggling to keep parity with USD as the HUSD peg dropped from $1 to $0.746 per Unit on October 30, 2022. At the time of writing, the stablecoin token is exchanging hands for $0.765 per unit and there’s only $59,790 in global trade volume during the past 24 hours.
Bitcoin.com News published two days ago a report by Huobi Global that Huobi Global would be delisting HUSD (a stablecoin asset created by Stable Universal). Huobi, like the stablecoin, shared the same name. Huobi introduced HUSD in October 2018. The exchange then disassociated from the token.
HUSD fell earlier this year to $0.82/USD, which was the lowest since Aug. 18. The HUSD fell below $1 on October 11th and Oct. 28th respectively. HUSD hit an all-time low of $0.725/unit on Saturday, Oct. 29. This was 24 hours earlier than it had been. Huobi posted a tweet about the situation after the stablecoin dropped below $1 in August.
“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 tweetedAugust 18. Furthermore, at that time, HUSD’s official Twitter account tweeted about closing several market maker accounts.
“Recently, we had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts,” the HUSD Twitter account saidOn the same day. “Due to the time difference in banking hours, this resulted in a short-term liquidity problem but has since been resolved.”
At least, the official Twitter account of HUSD hasn’t tweeted since August 18, 2022 when the HUSD began to depeg the U.S. dollars.
How do you feel about HUSD’s fall below $1? Please comment below to let us know your thoughts on this topic.
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