The stablecoin HUSD, originally associated with the crypto exchange Huobi Global, lost its peg with the U.S. 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. (EST). This article was updated once more on Friday at 4:00 p.m. (EST), in order to reflect commentary from a blog post published by Huobi on August 19.
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 U.S. 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 attestations concerning HUSD’s backing. The web portal stcoins.com says HUSD is: “redeemed on a 1:1 basis against the U.S. 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 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 a.m. (EST) on Thursday morning. At 2:35 p.m., 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.
The following day Huobi published a blog post that notes HUSD’s peg has been restored after the issues it suffered on August 17 and 18. “Regarding the liquidity issue that occurred to HUSD yesterday, Huobi Global would like to announce that this issue has been resolved, thanks to our active communication and coordination with Stable Universe Limited, the issuer of HUSD. We sincerely apologize for any inconvenience caused to you,” Huobi Global explained on Friday.
What do you think about HUSD losing its peg with the U.S. dollar? Let us know what you think about this subject in the comments section below.
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