Huobi team has tweeted the reason explaining why its stablecoin HUSD briefly lost its peg to the US dollar
Per the tweet, HUSD has regained its lost peg to the US dollar within 12 hours.
The HUSD team took to Twitter to share an update on the latest HUSD de-peg predicament, further stating that the stablecoin has finally regained its former momentum back and has re-pegged back to its initial $1 value.
HUSD Has Regained Its Peg
Stable Universal backed HUSD stablecoin has finally re-pegged, bringing respite for its clients across the board. The HUSD team further took to Twitter to share an update announcing that HUSD has gained its parity with the US dollar and is back on track again.
As reported by EWN earlier, the stablecoin had briefly lost its peg on Thursday, alarming its investors/users for a short period. The stablecoin had plummeted 15% after losing its peg, which prompted crypto exchange Huobi to intervene and assist the HUSD team in averting the said crisis.
However, the HUSD team had recently shared an update on Twitter, informing its users that their stablecoin has finally regained its lost peg.
The team further outlined the reason why HUSD crashed almost 15% yesterday after losing its peg temporarily. Per the official tweet, the HUSD team had earlier decided to close several accounts across specific regions to comply with legal requirements. The decision also included closing several market maker accounts. In addition to this, the time difference in banking hours had created a short gap, which ultimately led its stablecoin to de-peg, triggering a short-term liquidity crisis.
Furthermore, the Huobi team has also tweeted a comprehensive Twitter update, describing in detail the timelines of the HUSD de-pegging event. Huobi has yet again reiterated that the stablecoin has regained its parity with the US dollar.
“At 22:00 (UTC), the problem was resolved and HUSD trading returns to normal.
HUSD recovered its peg within 12 hours.
We would like to reiterate: #Huobi has always prioritized the security of our users’ assets since our inception in 2013.” The exchange tweeted.
HUSD has briefly escaped the growing list of stablecoins which had recently lost its peg and had crashed almost 99% in value. Dubbed as one of the biggest stablecoins crashes in history, Terra UST had earlier crashed in May and had sent shockwaves in the crypto community.
Launched in 2018, HUSD is dubbed as “an ERC-20, HECO, TRC-20 and CRC-20 token issued and redeemed on a 1:1 basis against the U.S. dollar. ” The stablecoin has been designed to be easily redeemable with emphasis on increasing global interactions. Per Coinmarketcap, “HUSD was created to provide price stability to attract a serious crypto trading audience and simplify interactions with global markets.” At press time, HUSD is trading at $0.9989, up 9.53% (24 hours) with a market cap of $160,491,143.