Home
News
- HUSD is an ERC-20 token that is 1:1 ratio pegged with USD
- HUSD remains Below the $1 peg as token taps an all time low at $0.72
- Algorithm Stablecoin UST also struggled to maintain parity with dollar following saturday event
HUSD which is a fiat-collateralized stablecoin that offers the advantage of transacting with blockchain-based assets while mitigating price risk. HUSD is an ERC-20 token that is 1:1 ratio pegged with USD. Just like other stablecoins HUSD is struggling to maintain parity with the U.S dollar as HUSD has slipped from the $1 peg to $0.746 per unit on Oct 30,2022.
According to the news reports of Bitcoin.com two days ago Huobi Global announced that they are going to remove HUSK from the list , a stablecoin asset issued by stable Universal. A similar name is shared by Huobi and the Stablecoin HUSD was introduced by Huobi on october 19, 2018 and now the exchange has detached itself from the stablecoin token this year.
Huobi tweeted on Aug 18 Further at that time, HUSD’s officials Twitter account tweeted about closing several market maker accounts
“We are aware of the current liquidity issues associated with the HUSD stablecoin, which is issued by stable Universal Limited and built on the Ethereum network”,
“Recently we had made the decision to close several accounts in specific regions to comply with legal requirements which included some market maker accounts.
On the same day HUSD twitter account said
‘Due to the time difference in banking hours this resulted in a short-term liquidity problem but has since been resolved.’
HUSD depegged earlier this year, when it dropped to a low of $0.82 per HUSD on Aug.18 HUSD tapped on all time low on Oct 29, roughly 24 hours ago when it reached $0.725 per unit on saturday. When the stablecoin slipped below the $1 peg in august, Huobi addressed the problem via twitter.
The algorithm stablecoin UST, which is part of the Terra crypto ecosystem is one of the stablecoin which is struggling to maintain parity with the dollar following a saturday market event.
Crypto researcher Mika Honkasalo later on Saturday noted that “keeping the UST peg is leading to hundreds of millions in on-chain ETH sales. Who knows how much crypto is being sold by these entities on CEXs to try and push UST back to $1.
A market recovery began to take place following the Kwon tweet . At the press time,UST is trading at $0.9939 on Finance. Luna is currently trading at $61.10,according to coinGecko data down close to 16% in the past 24 hours.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
