Stable Universal’s HUSD Stablecoin lost dollar parity, facing liquidity issues.
HUSD, which was previously presented by Huobi Global and Paxos as a “safe, secure and fiat-backed stablcoin that combines the stability of the US dollar with the efficiency of blockchain technology”, has fallen to $0.89. This came after cryptocurrency exchange FTX removed HUSD from its basket of US dollar-linked stablecoins.
“Users will be able to deposit and withdraw HUSD if they wish, but this will interact with individual HUSD balances rather than FTX USD balances. Deposits in HUSD will not be included in the calculation of USD balances and will not serve as collateral. HUSD will no longer be treated by FTX as part of a basket of stablcoins pegged to the US dollar,” FTX said.
At the time of publication, HUSD’s market capitalisation had fallen to $146m. The Huobi exchange, responding to customer questions, said it had no stake in stablcoin and withdrew from its stake back in April.
“Huobi Global exited its stake in Stable Universal in April 2022. We hope that HUSD can resolve its liquidity issues as soon as possible,” a Huobi community manager said.
Paxos has not made an official statement about its stablecoin holdings and has not listed HUSD as a stablecoin that Paxos provides custody of since July 2020.
Earlier this month, another Stablecoin was deprecated. Project Acala lost billions of dollars worth of crypto-assets as a result of an exploit in its recently deployed liquidity pool, and the value of aUSD stabelcoin dropped to almost zero.
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