Huobi’s $HUSD is the latest stablecoin to depeg from the dollar. According to CoinGecko, the stablecoin traded for as low as US$0.82 earlier today.
Earlier this year, Huobi exited its stake in the stablecoin and $HUSD is now controlled by Stablecoin Universal.
The liquidity of the cash-backed stablecoin was skewed on decentralized finance (DeFi) protocol Curve Finance where there’s more HUSD than its paired tokens (Dai, USDT & USDC).
Huobi confirmed on Twitter that they are aware of the liquidity issues and the stablecoin depeg because Stablecoin Universal was experiencing a liquidity issue.
In under 24 hours, the HUSD dollar peg was restored. At the time of writing, it is trading at almost 1:1 to the US dollar.
HUSD just announced that due to compliance issues in certain regions, they had to close down a few accounts which resulted in short-term liquidity problems.
FTX may have seen this coming as 17 days ago they just removed HUSD from its own USD basket. User’s HUSD deposits will not count towards their USD balance on FTX.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
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