The HUSD stablecoin, which is supposed to be parity with U.S. dollars, fell nearly 15% from its $1 peg. According to data from CoinMarketCap, HUSD is now the latest stabilizecoin that has lost parity with U.S. dollars. It fell by as much at 14.7% on Thursday.

The Hong Kong-based Stable Universal issues HUSD, an ERC-20 token that is on the Ethereum Blockchain . is marketed to be a “safe stablecoin” that combines stability and efficiency with blockchain technology.

HUSD’s liquidity on Curve 3pool (3Crv), has been skew. The decentralized exchange issued a warning that “the current exchange rate for stablecoin is too low.”

Curve had HUSD priced at $0.87 as of the time this article was written.

These developments came just after the crypto exchange FTX removed USD from its list of USD stablecoins.

Although it’s not clear exactly what caused the depegging cryptocurrency exchange Huobi Global which was part of the launch of stablecoin in 2019, made an announcement stating that it is aware the token’s liquidity problem.

“Huobi has always placed safety first and will work with HUSD’s issuer in order to find a solution that restores stability as quickly as possible,” the exchange said on Twitter.

Huobi joined with Stable Universal, Paxos Trust Company and to issue the HUSD stablecoin. Paxos was initially the custody partner for USD reserves backing this asset. In June 2021, Huobi Trust, a Nevada state-chartered trust company, became project’s custodian.

Stablecoins are cryptocurrencies that can be used to redeem a fixed amount for a less volatile monetary product, such as a fiat money. These coins can be used to improve the efficiency and utility of blockchain payments.

However, in the last few months, many stablecoins have lost its dollar peg. Some in dramatic fashion.

Terra’s algorithmic stabilitycoin was also destroyed in May with its sister token, LUNA. This triggered a wave redemptions that eventually led to the collapse the Terra ecosystem.

Tether, the largest stablecoin in the crypto industry by market capital, briefly lost its USDT peg during the market crash of May. TRON’s stablecoin USDD fell to $0.925 a month later. , however, was saved by using collateral – even though it had depegged from US dollars for several weeks, per CoinMarketCap.

The most recent incident occurred earlier in the week when Polkadot-based, decentralized finance ( DeFi) platform Acala witnessed its aUSD stablecoin plummet by 99% due to hackers exploiting a vulnerability in its liquidity pool. Although hackers attempted to create a token to burn, the community managed to get its USD peg back. It traded at $0.84 as of this writing.



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Angie Byrd