The stablecoin HUSD, issued by Stable Universal, lost dollar parity, facing liquidity problems.
HUSD, which was previously introduced by Huobi Global and Paxos as a “secure, reliable and fiat-backed stablecoin that combines the stability of the US dollar and the efficiency of blockchain technology,” fell to $0.89. This comes after cryptocurrency exchange FTX removed HUSD from its basket of USD-pegged stablecoins.
“Users will be able to deposit and withdraw HUSD if they wish, however this will interact with individual HUSD balances and not FTX USD balances. Deposits in HUSD will not count towards the calculation of the USD balance and will not serve as collateral. HUSD will no longer be considered by FTX as part of a basket of USD-pegged stablecoins,” FTX said.
At the time of publication, the market capitalization of HUSD has dropped to $146 million. Huobi, in response to questions from customers, stated that it had nothing to do with the stablecoin and withdrew from its stake back in April.
“Huobi Global exited its stake in Stable Universal in April 2022. We hope that HUSD can resolve liquidity issues as soon as possible,” Huobi community manager said.
Paxos has made no official announcements about its holdings of the stablecoin, and as of July 2020 has not listed HUSD as the stablecoin that Paxos provides custody.
Earlier this month, another stablecoin was deprived. The Acala project lost billions of US dollars in crypto assets as a result of an exploit in a newly deployed liquidity pool, and the value of the aUSD stablecoin dropped to almost zero.