Huobi’s Stablecoin of Choice HUSD Depegs After Delisting Announcement

According to data from price tracking service CoinMarketCap, at the time of writing, stablecoin HUSD is trading for $0.32, significantly below its intended $1 U.S. dollar peg. The stablecoin started to crash on October, 28 when Huobi Global published a delisting announcement.

In the announcement, Huobi Global cited Article 11 of its Token Management Rules which outlines specific points of interest for random or regular due diligence of listed assets. No exact reason for delisting was mentioned in the official post. An earlier incident and subsequent announcement hint at a possible reason: on August, 17, HUSD dipped to $0.887 before restoring the peg on August, 19.

Despite HUSD issuer Stable Universal being independent from the Huobi group, the centralized crypto exchange contributed significantly to its promotion and marketing. Moreover, on Huobi Global user accounts stablecoin holdings in USDC, GUSD, TUSD, and PAX have been tracked as HUSD since the joint solution was first launched in October 2018.

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