Huobi delists trading pairs with HUSD stablecoin

After the announcement appeared on the exchange site, the asset temporarily lost its peg to the US dollar, dropping to $0,84

11.10.2022 - 13:40

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What’s new? On October 10, cryptocurrency exchange Huobi delisted 21 currency pairs with its native HUSD stablecoin. Trading of the token was stopped in pairs with BTC, ETH, DOT, XRP, BCH, LTC, ADA, ALGO, DOGE, USDC, HT, LINK, EOS, ETC, TRX, CRV, UNI, FIL, OMG, AAVE, and THETA. All pending orders in the asset pair were canceled and funds were automatically returned to users' accounts.

Information on the Huobi website

How did the delisting affect the HUSD price? After the announcement appeared on the exchange's website, the asset temporarily lost its peg to the US dollar, dropping to $0,84, according to data from aggregator CoinGecko. The stablecoin then briefly recovered, but later began to lose value again. As of October 11, 12:30 UTC, HUSD is trading at $0,98. It already lost its peg to the dollar in August, dropping to $0,82 due to temporary liquidity problems.

What is known about HUSD? The stablecoin was launched in 2018. Huobi decided to create its own stablecoin after noticing problems with Tether (USDT). HUSD, based on the ERC-20 standard, is used as an aggregator for other stablecoins such as True USD (TUSD), USD Coin (USDC), Paxos Standard (PAX), and Gemini Dollars (GUSD). Thus, any of these coins appear on Huobi as HUSD. The asset is backed by fiat currency and undergoes monthly audits in the United States.

On October 8, Huobi co-founder Leon Li sold a majority stake to Hong Kong-based investment company About Capital Management and withdrew from the exchange. It was reported that the change in ownership would not affect trading activity. Analyst Colin Wu later named TRON blockchain founder Justin Sun as the ultimate beneficiary of the deal, adding that it was partly financed by FTX cryptocurrency exchange head Sam Bankman-Fried. Both denied these claims. Sun added that he is merely a member of the exchange’s global advisory board.

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