Yet another stablecoin HUSD seems to be dwindling down to losing its peg with the U.S. dollar. HUSD now appears to be the next stablecoin that’s having serious difficulties in maintaining its dollar pegging.
Huobi, the crypto exchange that seemingly backed HUSD stablecoin, presumably abandoned the project in April. Nevertheless, they promise to assist in handling the liquidity issues.
The stablecoin has tumbled by as much as 15% on Thursday, according to data from CoinMarketCap.
The de-pegging has resulted in HUSD’s liquidity on the Curve 3pool (3CRV) skewing, with the decentralized exchange issuing a warning that the current exchange rate for HUSD is too low.
The news came shortly after crypto exchange FTX removed HUSD from its basket of supported USD stablecoins. Though it is unclear what caused the de-pegging, Huobi Global which participated in the launch of stablecoin back in 2019, announced that it is aware of the token’s liquidity issue.
The exchange tweeted that Huobi has always prioritized the safety of its users’ assets and will work collaboratively with HUSD’s issuer to resolve the issue and restore its stability.
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