Stable Universal’s HUSD stablecoin has lost its peg to the united states dollar The stablecoin was earlier launched in 2018, in collaboration along with the Huobi crypto exchange
Huobi Bitcoin exchange’s stablecoin HUSD has lost its peg to the united states dollar and happens to be trading at $0.88.
HUSD Stablecoin Plummets To $0.88
HUSD, a stablecoin managed by Stable Universal, is struggling to keep its parity to the united states dollar. At press time, the stablecoin has dropped to $0.9186, down 8.56% from its intended value of $1.
Dubbed a secure, reliable, and fiat-collateralized stablecoin in accordance with Coinmarketcap, HUSD was made to supply price stability to attract serious crypto trading and increase global interaction, however, the stablecoin has plummeted by almost 15% from its earlier peg, raising further concerns over its sudden price decline.
The sudden price drop in HUSD has further affected its liquidity pool on Curve 3Pool. The DEX is presently displaying a warning stating that the existing exchange rate of this stablecoin is too low.
HUSD premiered in 2018 by leading cryptocurrency exchange Huobi in collaboration with Stable Universal and Paxos. The exchange reportedly abandoned its stablecoin project earlier, however, the Huobi has shared a Twitter update promising to greatly help the stablecoin in times of such distress.
The exchange further tweeted that it’s currently alert to the liquidity crisis which the HUSD de-peg has caused and it’s prepared to assist and interact with Stable Universal to stabilize the said situation.
We have been aware of the existing liquidity issues from the HUSD stablecoin, that is issued by Stable Universal Limited and built over the Ethereum network.
— Huobi (@HuobiGlobal) August 18, 2022
“#Huobi has always prioritized the safety of your customer’s assets, and can interact with HUSD’s issuer to discover a solution and restore its stability at the earliest opportunity.” the Twitter post later adds
HUSD isn’t the only real stablecoin which has recently lost its peg to the united states dollar. Earlier Terra’s algorithmic stablecoin UST had also plunged to a fresh low, crashing 100% in value.
After that, among the leading stablecoins Tether (USDT) had also briefly lost its peg in-may, accompanied by Tron backed USDD stablecoin plummeting to $0.925
Image: HUSD/Twitter