From $1 billion market cap last year, the total market cap of the HUSD stablecoin has dropped to $63 million this year.
Last week crypto exchange Huobi decided to delist the HUSD stablecoin. Since then the HUSD stablecoin has lost its dollar peg by nearly 72% by dropping to a low of 28 cents.
Just in the last 24 hours, HUSD has dropped 58% and is currently trading at 31 cents amid massive sell orders in the market. However, crypto exchange Huobi said that users can still exchange HUSD tokens for Tether (USDT), the largest stablecoin by market cap.
Stablecoins have been very popular in the market recently and are designed to mirror the value of fiat currencies. Some of the most popular stablecoins in the market currently mirror the US Dollar.
However, the stablecoin market has been shaken up quite a bit with the collapse of the TerraUSD (USDT) stablecoin earlier this year. The collapse of the Terra ecosystem prompted an implosion of more than $60 billion. Terra’s USDT was an algorithmic stablecoin tied to Terra’s native cryptocurrency LUNA.
Issued by Stable Universal, the HUSD stablecoin also suffered some problems earlier this year as it began to fluctuate from the USD peg. However, one of the immediate changes undertaken by him is shifting the volume to his own stablecoin USDD.
Note that Huobi was not the one issuing the HUSD stablecoin. However, it has been pretty much active in marketing the token since its launch in 2018. Currently, the market cap of HUSD is $63 million. It has dropped significantly from the $1 billion market cap last year to 2021.
Huobi’s Official Announcement
During an announcement last week, crypto exchange Huobi said:
“As part of our continuous efforts to promote the healthy development of the blockchain ecosystem, Huobi Global will be ceasing the HUSD trading service and delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules. The service termination and delisting of HUSD will start at 08:00 (UTC) on October 28, 2022. In the meantime, users’ HUSD assets will be converted to USDT assets at a 1:1 ratio.”
Huobi said that the completion of the conversion from HUSD to USDT will happen before November 4. Earlier this month, About Capital Management announced taking a controlling stake in Huobi Exchange with the exchange selling all its equity. However, this transaction will have no impact on Huobi’s core operations and business management teams.