The stablecoin HUSD, originally associated with crypto exchange Huobi Global, lost its peg to the US dollar on Wednesday, August 17 and dropped even lower on the following Thursday, August 18. On Thursday, Huobi addressed the public on Twitter, stating that the exchange “we are aware of the current liquidity issues associated with the HUSD stablecoin.” According to market data, HUSD fell to a low of $0.827 per unit on Thursday.
The 22nd largest stablecoin HUSD drops out of USD parity
Four days ago, after the August 14 AUSD incident, another stablecoin pegged to USD value fell below USD parity: the stablecoin HUSD, associated with Huobi Global, fell to a low of $0.827 per unit before dropping 16% in value on Thursday. The HUSD depegging issue began Wednesday evening (EST) when the stablecoin fell to $0.92 per unit.
On Thursday, Huobi Global responded to the public on Twitter, explaining that HUSD has some liquidity issues.” We are aware of the current liquidity issues associated with the HUSD stablecoin issued by Stable Universal Limited and built on the Ethereum network.” Huobi wrote. “Huobi always prioritizes the safety of its customers’ assets and will work with the HUSD issuer to find a solution and restore its stability as soon as possible,” the exchangeadded
Out of more than 13,000 crypto asset market capitalizations, HUSD ranks 353rd, occupying the 22nd position in terms of stablecoin market valuation. The coin’s market capitalization today is approximately $68,801,056, but 81,358,201 HUSD coins have been issued, indicating a large discrepancy from the so-called USD value. Furthermore, an unverifiedreportdetails what a Huobi community manager allegedly said on Huobi’s official Telegram channel:” HUSD is a stable currency issued by Stable Universal Limited” and “Huobi exited in April 2022.”
Stable Universal, in cooperation with the accounting firm Eide Bailly LLP, issues monthlycertificatesregarding the backing of HUSD. The web portalstcoins.comstates that HUSD is. “It is redeemable at 1:1 against the U.S. dollar. It is designed for easy redemption and provides a tool to reduce volatility for holders when participating in the cryptocurrency market.” HUSD was first introducedin a blog post published by Huobi Global on October 19, 2018
At the time of writing, HUSD was able to exceed the $0.903 per coin range at 11:10 PM EST on Thursday.
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