Tuesday, November 29, 2022
 

HUSD Slowly Recovers After Losing Its Dollar Peg

  • The value of HUSD fell 14.7% on August 18, according to CoinMarketCap, making it the latest cryptocurrency to lose parity with the U.S. dollar.
  • HUSD has been gradually regaining ground since yesterday’s low of $0.8439.
  • After an 18% increase, the stablecoin has moved closer to its $1 peg.

On Thursday, CoinMarketCap reported a 14.7% drop in the value of HUSD, an Ethereum network-based stablecoin issued by Stable Universal Limited, making it the latest cryptocurrency to lose its parity with the U.S. dollar, dropping as low as $0.84. However, the cryptocurrency exchange has since confirmed that the problem with its liquidity has been resolved.

Huobi Global, a popular cryptocurrency exchange that helped launch the stablecoin in 2019, has acknowledged liquidity difficulties with HUSD and has collaborated with the stablecoin’s issuer to find a solution and re-establish stability. Furthermore, Huobi’s community manager, Ruly, had previously declared in the community that Huobi had divested itself of its ownership share in Stable Universal as recently as April of this year.

This recent turn of events followed closely on the heels of the cryptocurrency exchange FTX delisting HUSD from its list of USD stablecoins it supports.

On August 19, HUSD offered somewhat of an explanation for the liquidity problems. The firm states that it has recently chosen to close a number of accounts in order to meet local regulations, including some market maker accounts. There was an initial disruption in liquidity because of the disparity in banking hours, but the situation is back to normal at this point.

Huobi has requested some caution from its customers in light of the current state of the cryptocurrency market. A statement made by Huobi reads:

Given the recent volatility in the cryptocurrency market, we advise our users to pay close attention to and be aware of potential risks.

HUSD has been slowly recovering from yesterday’s low of $0.8439. The stablecoin inched closer to its $1 peg after an 18% rise. The asset’s price was $0.9917 at press time, up 7.8% over the past 24 hrs.

  • The value of HUSD fell 14.7% on August 18, according to CoinMarketCap, making it the latest cryptocurrency to lose parity with the U.S. dollar.
  • HUSD has been gradually regaining ground since yesterday’s low of $0.8439.
  • After an 18% increase, the stablecoin has moved closer to its $1 peg.

On Thursday, CoinMarketCap reported a 14.7% drop in the value of HUSD, an Ethereum network-based stablecoin issued by Stable Universal Limited, making it the latest cryptocurrency to lose its parity with the U.S. dollar, dropping as low as $0.84. However, the cryptocurrency exchange has since confirmed that the problem with its liquidity has been resolved.

Huobi Global, a popular cryptocurrency exchange that helped launch the stablecoin in 2019, has acknowledged liquidity difficulties with HUSD and has collaborated with the stablecoin’s issuer to find a solution and re-establish stability. Furthermore, Huobi’s community manager, Ruly, had previously declared in the community that Huobi had divested itself of its ownership share in Stable Universal as recently as April of this year.

This recent turn of events followed closely on the heels of the cryptocurrency exchange FTX delisting HUSD from its list of USD stablecoins it supports.

On August 19, HUSD offered somewhat of an explanation for the liquidity problems. The firm states that it has recently chosen to close a number of accounts in order to meet local regulations, including some market maker accounts. There was an initial disruption in liquidity because of the disparity in banking hours, but the situation is back to normal at this point.

Huobi has requested some caution from its customers in light of the current state of the cryptocurrency market. A statement made by Huobi reads:

Given the recent volatility in the cryptocurrency market, we advise our users to pay close attention to and be aware of potential risks.

HUSD has been slowly recovering from yesterday’s low of $0.8439. The stablecoin inched closer to its $1 peg after an 18% rise. The asset’s price was $0.9917 at press time, up 7.8% over the past 24 hrs.

 

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