Huobi Global, a cryptocurrency trading platform announced on Thursday that it plans to remove the stablecoin HUSD from its exchange. The delisting process will start at 08:00 UTC (UTC) October 28th 2022. Users with HUSD on the exchange will have their balances converted to stablecoin asset tokens. The exchange hopes to finish the conversion by November 4.
Huobi Global Reveals Plans To Delist HUSD, Auto-Convert Balances to Tether and HUSD Stablecoin Below $1 Peg After Announcement
According to Huobi’s Thursday update, the exchange will delist stablecoin HUSD. The trading platform detailed that it is “delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules.” The termination and delisting period will begin on Friday and amid the delisting period up until November 4, 2022, Huobi’s customers will see their HUSD auto-converted into tether (USDT) at a 1:1 ratio. The move follows Tron founder Justin Sun’s backing of Huobi and telling Bloomberg he’s “one of the biggest holders” of Huobi tokens worldwide.
Huobi Global published HUSD as a stablecoin in October 2018. The coin was created on Ethereum and first appeared in a blog post. ERC20 tokens are supported 1:1 by the U.S. Dollar and currently 187,817,000.004 is in circulation. HUSD can also be used with TRC20 and CRC20 tokens, in addition to Ethereum. HUSD claims that the market value of all its chains is around $223M, while stats from coingecko.com show $187M.
Huobi launched HUSD while the stablecoin asset was issued by Stable Universal, a Hong Kong-based company. After the announcement on Thursday, the stablecoin HUSD depegged from the token’s $1 parity down to $0.9549 per unit at 7:09 p.m. (ET). Thursday evening’s depegging event was not HUSD’s first rodeo derailing off of the $1 parity range. In August, HUSD dropped below USD to $0.82 per token. On October 11, it fell to $0.90 per coin.
The HUSD delisting and auto-conversions to USDT follow Binance’s move to auto-convert three different stablecoins into BUSD. Wazirx also opted to auto-convert its customers’ stablecoin assets into BUSD. Moreover, the top two stablecoins by market valuation — USDT and USDC — have seen their coins in circulation drop by tens of billions. At 5:23 AM (ET), the HUSD lost $1 and fell to $0.899 per unit.
Do you have any thoughts about Huobi Global’s decision to remove the stablecoin, HUSD, from its exchange platform? Comment below and let us know how you feel about the subject.
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