HUSD Stablecoin Depegs Again After Huobi Delists HUSD Trading Pairs
The HUSD stablecoin has depegged to $0.96 and is yet to recover its dollar parity after the Huobi exchange recently announced that it would delist HUSD trading pairs.
Huobi’s dollar-pegged stablecoin HUSD has broken away from its $1 peg again following the delisting of a number of trading pairs of the token on the Huobi exchange. The stablecoin is currently standing at $0.97 and has fallen from its $1 peg for the last 12 hours.
While not as severe as the depeg that occurred in August 2022 when it hit $0.85, it’s still yet another negative incident for the stablecoin.
HUSD is an ERC-20 stablecoin and is collateralized on a 1:1 ratio with USD held in Paxos-owned U.S. bank accounts. It was designed to club four stablecoins — Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD) — into one that could be traded across Huobi.
Huobi has not commented on the incident yet. In August, when the last depegging happened, Huobi confirmed the price fluctuations and worked with the issuer of HUSD to resolve the issue.
Depeggings have become a bigger concern for the market following the crash of TerraUSD earlier in the year. The crash of that ecosystem had ripple effects across the market, and investors are wary of any stablecoins fluctuations at the moment.
Huobi delists HUSD stablecoin trading pairs
Huobi announced on Oct. 10 that it would be delisting several trading pairs of the HUSD token on the exchange. This is likely what set off the loss of the $1 peg. However, it’s unclear why Huobi might have delisted the token in the first place.
In September, Binance announced that it would no longer list several trading pairs associated with popular trading coins. Instead, deposits would automatically be converted into Binance USD. However, this isn’t the same here, and perhaps Huobi is simply not prioritizing the stablecoin anymore.
The HUSD stablecoin is already down to $0.96. 24-hour trading volume has crossed over $800,000.
HUSD transferred to address linked to Alameda
Peck Shield also revealed that Huobi had transferred $70,000 worth of HUSD to an address linked to Alameda Research. The latter has since exchanged this for other stablecoins.
Alameda Research is a cryptocurrency trading firm whose CEO and founder is Sam Bankman-Fried, one of the most well-known names in crypto. He is the CEO of crypto exchange FTX, which has been rumored to have wanted to buy Huobi.
Bankman-Fried denied the report that FTX would buy Huobi. However, more recent reports alleged that Justin Sun was behind the Huobi acquisition, and Bankman-Fried helped in the process.
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