Huobi team has tweeted the reason explaining why its stablecoin HUSD briefly lost its peg to the US dollar Per the tweet, HUSD has regained its lost peg to the US dollar within 12 hours.
The HUSD team took to Twitter to share an update on the latest HUSD de-peg predicament, further stating that this stablecoin has finally regained its former momentum back and has re-pegged back to its initial $1 value.
HUSD Has Regained Its Peg
Stable Universal backed HUSD stablecoin has finally re-pegged, bringing respite for its clients across the board. The HUSD team further took to Twitter to share an update announcing that HUSD has gained its parity with the US dollar and is back on track again.
As reported by EWN earlier, the stablecoin had briefly lost its peg on Thursday, alarming its investors/users for a short period. The stablecoin had plummeted 15% after losing its peg, which prompted crypto exchange Huobi to intervene and assist the HUSD team in averting the said crisis.
After #Huobi’s active coordination using the issuer of HUSD, the liquidity issues from the stablecoin have been resolved. Huobi has always prioritized the security of users’ assets and we thank our loyal users for their support and trust.
— Huobi (@HuobiGlobal) August 19, 2022
However, the HUSD team had recently shared an update on Twitter, informing its users that their stablecoin has finally regained its lost peg.
The team further outlined the reason why HUSD crashed almost 15% yesterday after losing its peg temporarily. Per the official tweet, the HUSD team had earlier decided to close several accounts across specific regions to comply with legal requirements. The decision also included closing several market maker accounts. In addition to this, the time difference in banking hours had created a short gap, which ultimately led its stablecoin to de-peg, triggering a short-term liquidity crisis.
Recently, we had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts. Due to the time difference in banking hours, this resulted in a short-term liquidity problem but has since been resolved.
– HUSD (@Stablecoin_HUSD) August 19, 2022
Furthermore, the Huobi team has also tweeted a comprehensive Twitter update, describing in detail the timelines from the HUSD de-pegging event. Huobi has yet again reiterated that this stablecoin has regained its parity with the US dollar.
“At 22:00 (UTC), the problem was resolved and HUSD trading returns to normal.
HUSD recovered its peg within 12 hours.
We would like to reiterate: #Huobi has always prioritized the security of our users’ assets since our inception in 2013.” The exchange tweeted.
We are committed to this principle and we will continue to do so. Be rest assured that your assets will always be #safe and #secure on #Huobi Global.
— Huobi (@HuobiGlobal) August 19, 2022
HUSD has briefly escaped the growing list of stablecoins which had recently lost its peg and had crashed almost 99% in value. Dubbed as one of the biggest stablecoins crashes in history, Terra UST had earlier crashed in May and had sent shockwaves in the crypto community.
Launched in 2018, HUSD is dubbed as “an ERC-20, HECO, TRC-20 and CRC-20 token issued and redeemed on a 1:1 basis against the U.S. dollar. ” The stablecoin continues to be designed to be easily redeemable with emphasis on increasing global interactions. Per Coinmarketcap, “HUSD was created to provide price stability to attract a serious crypto trading audience and simplify interactions with global markets.” At press time, HUSD is trading at $0.9989, up 9.53% (24 hours) with a market cap of $160,491,143.