After Huobi Delisting Stablecoin HUSD Falls 72% From Dollar Peg
Huobi has said it will assist customers in exchanging HUSD for USDT.
The once-popular HUSD stablecoin has fallen dramatically from its $1 peg, dropping to a low of 28 cents after crypto exchange Huobi announced it delisted the asset on Friday.
Huobi said users can still exchange HUSD tokens for tether (USDT), the industry's largest stablecoin by market cap.
Stablecoins are designed to mirror the value of other assets, typically fiat currencies like the dollar, pound sterling or euro. The stablecoin sector was shaken up earlier this year following the collapse of terraUSD (UST), which prompted an implosion of the entire $60 billion Terra ecosystem.
HUSD, which is issued by Stable Universal, also suffered issues earlier this year when it began to fluctuate away from its peg.
Tron founder Justin Sun has taken a senior role at Huobi in recent weeks and one of the immediate changes he is making is shifting volume to his own stablecoin, USDD. While Huobi didn't issue HUSD, it was active in marketing the token since its launch in 2018.
HUSD currently has a market cap of just $63 million, down significantly from its all-time high of over $1 billion in 2021.
Huobi did not immediately reply to CoinDesk's request for comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.