The HUSD is going through a tough time as the currency takes a dip, causing it to break away from the USD in the usual 1:1 ratio. At the time of writing, HUSD is trading at around $0.9249 according to CoinMarketCap (CMC) and continuing to decline. This represents a decline of more than 7% from the usual level of $1.
Why the stablecoin launched by one of the biggest cryptocurrency exchanges lost its peg is still unknown.
Bloomberg recently claimed that the Huobi founder was keen to sell his stake for $3 billion, however the exchange later refuted this claim.
On Twitter, we don’t have no reaction from the exchange which seems for the moment to minimize this fall. The community is also not reacting strongly. It must be said that the HUSD has a market capitalization of only nearly $150 million and is ranked 237th on CMC. Compared to the $18 billion of TerraUSD at the time of its crash in May 2022, we understand that it is not the same magnitude.
What is the HUSD stablecoin?
HUSD was introduced in 2018 when the Huobi exchange realized the problems of Tether (USDT) and made the decision to develop its own stablecoin. The stablecoin built on the ERC-20 standard was intended to serve as an aggregate for other cryptocurrencies, including True USD (TUSD), USD Coin (USDC), Paxos Standard (PAX) and Gemini Dollars (GUSD). Users can deposit or withdraw any of these stablecoins and enjoy HUSD and its benefits on the Huobi exchange.