HUSD, the stablecoin of cryptocurrency exchange Huobi, fell by 72 percent after being delisted.
The domino effects on stablecoins continue in the cryptocurrency market. The collapse of TerraUSD (UST) after the Terra crisis signaled sanctions and regulation. Cryptocurrency investors are starting to lose confidence in stablecoins. After the developments, many stablecoin services lost blood. In particular, HUSD has repeatedly come out of the $1 peg. Popular exchange Huobi announced on October 28 that it had delisted its HUSD service.
HUSD Joins Caravan of Collapsing Stablecoins
Popular exchange Huobi garnered reactions after delisting the HUSD stablecoin from the exchange. According to the announcement from the exchange, investors will be able to exchange their HUSD for USDT.
Issued by Stable Universal, HUSD has been struggling to become a peg since the beginning of this year. These problems, which further increased the loss of confidence of investors, mobilized the stock market.
Following the Delist decision, HUSD price dropped to the $0.3 level. The stablecoin, which was supposed to be pegged at $1, fell 72 percent. Investors are waiting for their HUSDs to be converted to USDT by the exchange.
According to the allegations, Justin Sun, who plays a senior role in Huobi, may have an influence. Allegedly, Sun wants to attract volume to its stablecoin, USDD.
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