Huobi’s native stablecoin, HUSD, has depegged from its $1 value
The token is down 60% in the last 24 hours.
Huobi’s native stablecoin HUSD has plunged to new lows. According to Wu blockchain, the exchange’s stablecoin has depegged from its dollar parity and is down 60%, trading at $0.2971
HUSD Depegs Again
After Huobi announced its decision to delist HUSD, the exchange’s stablecoin plunged to new lows, trading 60% below its price value. Huobi later announced that it would help its users convert their HUSD funds into USDT, one of the largest stablecoins by market cap.
HUSD’s depeg comes shortly after the exchange’s decision to delist the stablecoin. The exchange further declared how it would help its users convert their HUSD holdings into USDD, a stablecoin founded by Tron Network’s Justin Tron.
“As part of our continuous efforts to promote the healthy development of the blockchain ecosystem, Huobi Global will be ceasing the HUSD trading service and delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules The service termination and delisting of HUSD will start at 08:00 (UTC) on October 28, 2022. In the meantime, users’ HUSD assets will be converted to USDT assets at a 1:1 ratio. We will publish another announcement to notify users of the completion of the conversion, which is expected to occur before November 4, 2022 (GMT+8).” The exchange stated
Speculations are rife in the crypto market about whether Huobi has been purchased and acquired by Tron crypto founder Justin Sun. As per Wu blockchain, the firm has already been taken over by Sun, who is currently in the process of initiating mass layoffs in its bid to stabilise the exchange’s operations.
Wu further claims that FTX founder and CEO Sam Bankman-Fried has played an elemental role in the entire Huobi buyout process.
“But it is rumoured that FTX has invested to help Justin Sun. This may also push Binance, which has been supporting Justin Sun, to the position of his competitor. ” As mentioned in Wu Blockchain’s substack post
However, Tron crypto founder Justin Sun is yet to confirm such rumors. Sun recently took to Twitter to announce his new role as Huobi’s global advisor, but did not share any details related to Huobi’s alleged acquisition.
This isn’t the first time HUSD has depegged from its dollar value. The stablecoin had earlier lost its dollar peg due to unusual price fluctuations in August 2022. At press time, the token’s market cap is below $63 million, down 60% in the last 24 hours, trading at $0.3082.