After Huobi Global announced that it would be delisting the stablecoin HUSD and auto-converting customer balances 1:1 with tether tokens, the stablecoin asset has dropped significantly in value sliding to a low of $0.72 per unit.
HUSD Remains Below the $1 Peg
Another stablecoin is struggling to maintain parity with the U.S. dollar as HUSD has slipped from the $1 peg to $0.746 per unit on Oct. 30, 2022. At the time of writing, the stablecoin token is exchanging hands for $0.765 per unit and there’s only $59,790 in global trade volume during the past 24 hours.
Two days ago, Bitcoin.com News reported on Huobi Global announcing that it would delist HUSD, a stablecoin asset issued by Stable Universal. While Huobi and the stablecoin shared the same name, and Huobi introduced HUSD on Oct. 19, 2018, the exchange disassociated itself from the stablecoin token this year.
HUSD depegged earlier this year, when it dropped to a low of $0.82 per HUSD on Aug. 18. HUSD also slipped below the $1 parity on Oct. 11 and again on Oct. 28. HUSD tapped an all-time low on Oct. 29, roughly 24 hours ago when it reached $0.725 per unit on Saturday. When the stablecoin slipped below the $1 peg in August, Huobi addressed the problem via Twitter.
“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 tweeted on Aug. 18. Furthermore, at that time, HUSD’s official Twitter account tweeted about closing several market maker accounts.
“Recently, we had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts,” the HUSD Twitter account said on the same day. “Due to the time difference in banking hours, this resulted in a short-term liquidity problem but has since been resolved.”
The official HUSD Twitter account, at least as of Oct. 30, 2022, at 9:30 a.m. (ET), has not tweeted or made any statements since the Aug. 18 tweet when HUSD first started to depeg from the U.S. dollar.