Another Stablecoin Fluctuates Wildly as HUSD Slides Below Peg USD at $0.82 Per Token – Bitcoin News

The HUSD stablecoin, originally associated with crypto exchange Huobi Global, lost its peg with the US dollar on Wednesday, August 17, and fell in value again 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 the HUSD slipped to a low of $0.827 per unit on Thursday.

**Editor’s note: The last paragraph of this article has been edited to reflect the rebound in HUSD to $0.99 per unit at 2:35 PM EST. This article was updated once again Friday at 4:00 p.m. EST to reflect comments from a blog post published by Huobi on August 19.

22nd Largest Stablecoin HUSD Deviates From USD Parity

After the AUSD incident four days ago, on August 14, another stablecoin pegged to the value of the US dollar fell below the USD parity. The HUSD stablecoin, associated with Huobi Global, lost 16% of its value on Thursday after falling to a low of $0.827 per unit. The HUSD unpeg 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 the HUSD was having 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 said. wrote. “Huobi has always prioritized the security of our clients’ assets and will work with the issuer of HUSD to find a solution and restore its stability as soon as possible,” the exchange said. added.

Out of over 13,000 crypto asset market caps, HUSD is ranked #353 and ranks 22nd 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, which shows a big difference in its so-called USD value. Also, not verified reports detail that a Huobi community manager on Huobi’s official Telegram channel reportedly said, “HUSD is a stablecoin issued by Stable Universal Limited” and “Huobi was released in April 2022”.

Stable Universal, with the help of the accounting firm Eide Bailly LLP, issued monthly certificates regarding the backing to HUSD. The web portal states that HUSD is: “redeemed on a 1:1 basis against the US dollar. It is designed to be easily tradable 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 managed to break above the $0.903 per coin range at 11:10 a.m. (EST) on Thursday morning. As of 2:35 p.m., the value of HUSD rebounded to $0.999 per unit on Thursday late afternoon (EST). The price of HUSD has remained within the range of $0.995 per token for the past half hour.

The following day, Huobi posted a blog post indicating that the HUSD peg has been restored after the issues experienced on August 17 and 18. “Regarding the liquidity issue that occurred yesterday in HUSD, Huobi Global would like to announce that this issue has been resolved through our active communication and coordination with Stable Universe Limited, the issuer of HUSD. We sincerely apologize for any inconvenience caused to you. caused,” Huobi Global explained on Friday.

Keywords in this story

Acala Network, AUSD, depeg, depegging, Dollar Peg, Eide Bailly LLP, ERC20, Ethereum Network, Honzon Protocol, Huobi, Huobi Global, Huobi Stablecoin, HUSD, lose peg, lose parity, Stable Universal, Stable Universal Limited, Stablecoin, Stablecoins, USD parity

What do you think of the HUSD’s loss of peg to the US dollar? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for News about disruptive protocols emerging today.

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