The HUSD stablecoin has managed to recapture the $1 stablecoin after the 8% drop.
In a statement, the HUSD team cited a market maker account that was closed as a cause of de-peg.
HUSD Stablecoin Takes $1 Level Back
The HUSD stablecoin, launched by Stable Universal, managed to catch the price of $ 1 after the 8% drop it experienced last day.
The HUSD team said in a statement on Twitter that the decline was due to the closure of several accounts, including market maker accounts. HUSD, whose market value fell to $136.3 million the other day, has now reached $160 million again.
The following statements were used in the statement made by the team:
“Recently made the decision to close several accounts in certain regions to meet regulatory requirements, including some market maker accounts. Due to the differences in banking hours, this situation caused a short-term liquidity problem. But the problem has been solved”
Stablecoins, designed to be pegged to fiat currencies such as the dollar and euro, have long been a hot topic in the crypto industry. In particular, the massive collapse of TerraUSD has caused stablecoins to enter the regulators’ radar.
HUSD has a different structure than TerraUSD. Unlike TerraUSD, which is an over-collateralized stablecoin, HUSD is a cash-backed stablecoin.
Recently, we had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts. Due to the time difference in banking hours, this resulted in a short-term liquidity problem but has since been resolved.
— HUSD (@Stablecoin_HUSD) August 19, 2022
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