HUSD, the fiat-collateralized stablecoin from Huobi dropped below the dollar mark. At press time, HUSD is priced at $0.29, down more than 60% over the past 24 hours. The drop accelerated after news broke that Huobi was planning on delisting the token. According to the exchange’s official release, the delisting is part of the exchange’s “continuous efforts to promote the healthy development of the blockchain ecosystem.”
HUSD is an ERC-20 stablecoin backed 1:1 by U.S. dollars kept in bank accounts controlled by Paxos in the United States. It was created to combine four stablecoins into a single asset that could be traded on Huobi: Paxos Standard, True USD, USD Coin, and Gemini Dollars.
HUSD previously de-pegged earlier this year, hitting a low of $0.82 per HUSD on August 18. HUSD fell below the $1 parity on October 11 and again on October 28. In August, when the stablecoin fell below the $1 peg, Huobi tweeted about the issue, stating:
More importantly, HUSD’s official Twitter account also announced the shutting down of multiple market maker accounts on the same day. The stablecoin issuer tweeted:
“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.”
The stablecoin was removed from Huobi’s exchange on October 28. Exchange users who had HUSD had their balances automatically converted to Tether, a stablecoin asset. Moreover, the entire conversion process to Tether is expected to be completed by November 4.
Prior to delisting HUSD, Huobi announced that it would be delisting many HUSD token trading pairs. Many expect this to be the move that triggered the de-pegging. As of now, there have been no comments from Huobi as to why it de-listed the stablecoin.
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Source: Cryptocurrency - investing.com
