HUSD Stablecoin Loses Its US Dollar Peg

According to CoinMarketCap data, HUSD is the latest in the list of stablecoins that have lost it’s Peg to the US Dollar. It appears to have dropped about 14%, losing parity with the US Dollar.

HUSD is an Ethereum network based stablecoin issued by Stable Universal Limited. The cause of HUSD liquidity issues is currently unclear.

Crypto exchange FTX issued an announcement that stated HUSD had been removed from their USD basket.

HUSD will no longer be treated as part of the USD basket.

Users will be able to deposit and withdraw HUSD if they wish; doing so will interact with distinct HUSD balances, not USD balances. HUSD deposits will not count towards USD balances and will not serve as collateral.

Huobi the cryptocurrency exchange that launched HUSD in 2018 has promised to help with the liquidity issues even though they apparently no longer have a stake in the project.

“Huobi always prioritizes the safety of customers’ assets and will work with the issuer of HUSD to find a solution and restore stability as soon as possible,” the exchange wrote on Twitter.