Huobi stated it is "familiar with the present liquidity problems connected with the HUSD stablecoin."
Key Takeaways
- HUSD has actually depegged from the dollar and presently trades at around $0.88
- The occasion can be found in the wake of news that Sam Bankman-Fried and Justin Sun were exposed to be in talk with acquire big stakes in Huobi Global.
- While Huobi Global does not clearly release HUSD, Huobi Capital bought HUSD company Stable Universal in2019
The HUSD stablecoin presently trades at around $0.88 after losing parity to the dollar late Wednesday afternoon.
HUSD in Peril
Another stablecoin has actually broken its dollar peg.
HUSD, a dollar-backed stablecoin provided by Stable Universal, broke from its peg Wednesday, raising issues over a possible bank run. It presently trades for around $0.88 after investing over 24 hours listed below parity with the dollar.
The news comes less than a week after FTX CEO Sam Bankman-Fried and TRON creator Justin Sun were exposed to be in talks to buy a bulk stake in the Huobi Global crypto exchange. While Huobi Global does not clearly provide HUSD, Huobi Capital, the exchange's financial investment arm, purchased HUSD company Stable Universal in2019
The main Huobi Twitter account discussed the depeg Thursday as HUSD fell even more from its dollar peg. "We understand the present liquidity concerns related to the HUSD stablecoin, which is released by Stable Universal Limited and constructed on the Ethereum network," the exchange stated, going on to describe that it is dealing with the HUSD company to bring back the stablecoin's peg "as quickly as possible."
The HUSD stablecoin can be redeemed on a one-to-one basis versus the U.S. dollar, according to the business's site
This story is breaking and will be upgraded as quickly as more details is offered.
Disclosure: At the time of composing this piece, the author held ETH and a number of other cryptocurrencies.
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