Another Stablecoin Fluctuates Wildly as HUSD Slips Below USD Peg to $0.82 per Token
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). 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. Tags 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, losing parity, Stable Universal, Stable Universal Limited, Stablecoin, Stablecoins, USD parity
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. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com 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 Bitcoin.com News about the disruptive protocols emerging today. Russian Accused of Laundering Cryptocurrency From Ransomware Attacks Extradited to US NEWS | 2 hours ago Celsius Approved to Sell Mined Bitcoin, Customer That Lost 50,000 USDC Insists Her Regulated Stablecoins Should Be Treated Differently NEWS | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin’s Mining Difficulty Rises for the Second Time in a Row — It’s Now 0.63% Harder to Find a BTC Block Next articleRussian Accused of Laundering Cryptocurrency From Ransomware Attacks Extradited to US 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. Bitcoin.com 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. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards
Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin