Dollar-Backed HUSD Stablecoin Plummets From Peg
Huobi said it is “aware of the current liquidity issues associated with the HUSD stablecoin.”
- HUSD has depegged from the dollar and currently trades at around $0.88.
- The event comes in the wake of news that Sam Bankman-Fried and Justin Sun were revealed to be in talks to purchase large stakes in Huobi Global.
- While Huobi Global does not explicitly issue HUSD, Huobi Capital invested in HUSD issuer Stable Universal in 2019.
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The HUSD stablecoin currently trades at around $0.88 after losing parity to the dollar late Wednesday afternoon.
HUSD in Peril
Another stablecoin has broken its dollar peg.
HUSD, a dollar-backed stablecoin issued by Stable Universal, broke from its peg Wednesday, raising concerns over a possible bank run. It currently trades for around $0.88 after spending over 24 hours below parity with the dollar.
The news comes less than a week after FTX CEO Sam Bankman-Fried and TRON founder Justin Sun were revealed to be in talks to purchase a majority stake in the Huobi Global crypto exchange. While Huobi Global does not explicitly issue HUSD, Huobi Capital, the exchange’s investment arm, invested in HUSD issuer Stable Universal in 2019.
The official Huobi Twitter account commented on the depeg Thursday as HUSD fell further from its dollar peg. “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,” the exchange said, going on to explain that it is working with the HUSD issuer to restore the stablecoin’s peg “as soon as possible.”
The HUSD stablecoin can be redeemed on a one-to-one basis against the U.S. dollar, according to the company’s website.
This story is breaking and will be updated as soon as more information is available.
Disclosure: At the time of writing this piece, the author held ETH and several other cryptocurrencies.