Another Stablecoin Fluctuates Wildly as HUSD Slips Below USD Peg to $0.82 per Token – Bitcoin News

The stablecoin HUSD, originally associated with the crypto exchange Huobi Global, lost its peg with the US dollar on Wednesday, August 17, and it dropped even lower in value the following day on Thursday, August 18. 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.

**Editors Note: The last paragraph of this article was edited in order to reflect HUSD’s rebound to $0.99 per unit at 2:35 p.m. (ST).

22nd Largest Stablecoin HUSD Depegs From USD Parity

After the AUSD incident four days ago on August 14, another stablecoin pegged to the value of the US dollar has dropped below USD parity. The stablecoin HUSD, associated with Huobi Global, has shed 16% in value on Thursday after dropping to a low of $0.827 per unit. HUSD’s depegging problem started on Wednesday evening (EST) when the stablecoin slipped to $0.92 per unit.

On Thursday, Huobi Global addressed the public on Twitter and explained that HUSD had some sort of liquidity issues. “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.

Out of more than 13,000 crypto asset market capitalizations, HUSD is ranked #353 and holds the 22nd position in terms of stablecoin market valuations. 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. Furthermore, 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 certifications concerning HUSD’s backing. The web portal says HUSD is: “redeemed on a 1:1 basis against the US 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 the first introduced in a blog post published by Huobi Global on October 19, 2018.

HUSD has managed to rise above the $0.903 per coin range at 11:10 am (EST) on Thursday morning. At 2:35 pm, HUSD’s value rebounded back to $0.999 per unit late Thursday afternoon (EST). HUSD’s price has remained at the $0.995 per token range during the last half hour.

Tags in this story

Acala Network, USD, depeg, depegging, dollar peg, Eide Bailly LLP, ERC20, Ethereum Network, Honzon protocol, Huobi, Huobi Global, Huobi stablecoin, HUSD, lose peg, losing parity, Stable Universal, Stable Universal Limited, stablecoin, stablecoins, USD parity

What do you think about HUSD losing its peg with the US dollar? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for News about the disruptive protocols today emerging.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source link

Leave a Comment