HUSD stablecoin lost its peg to the dollar

The rate of the stablecoin of crypto exchange Huobi fell to $0,91

18.08.2022 - 09:00

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What’s new? The stablecoin of cryptocurrency exchange Huobi (HUSD) lost its peg to the US dollar. On August 17, the rate of the asset began to decline, and by the morning of August 18, it fell by almost 9%, to $0,91. As of 08:40 UTC, the value of HUSD is $0,926, according to CoinMarketCap. The developers of the stablecoin and representatives of the exchange have not yet reacted to the situation.

CoinMarketCap’s data

What is known about HUSD? It is a centralized stablecoin that was launched in 2018 by Huobi, an Asian cryptocurrency exchange. The platform decided to create its own stablecoin after noticing problems with Tether (USDT). The ERC-20-based HUSD 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 in the form of HUSD. The asset is backed by fiat currency and undergoes monthly audits in the US.

What happened before? On June 13, the algorithmic stablecoin USDD of the TRON blockchain temporarily lost its peg to the US dollar and plunged to $0,97. The coin has now fully recovered its rate.

Also on August 14, the stablecoin Acala Dollar (aUSD) lost its peg to the dollar due to a hacker attack on its DeFi platform Acala. The rate of the stablecoin collapsed by 95%, from $1,02 to $0,05. At the moment, the asset has not regained parity with the dollar and is trading at $0,84.

The biggest such incident is still the collapse of the TerraUSD (UST) stablecoin, which caused the entire ecosystem to collapse in May 2022. On August 14, the head of Terra Do Kwon gave the first interview after that situation, but it has not yet been aired.

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