Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
The once-popular HUSD stablecoin has fallen dramatically from its $1 peg, dropping to a low of 28 cents after crypto exchange Huobi announced it delisted the asset on Friday.
Huobi said users can still exchange HUSD tokens for tether (USDT), the industry's largest stablecoin by market cap.
Stablecoins are designed to mirror the value of other assets, typically fiat currencies like the dollar, pound sterling or euro. The stablecoin sector was shaken up earlier this year following the collapse of terraUSD (UST), which prompted an implosion of the entire $60 billion Terra ecosystem.
HUSD, which is issued by Stable Universal, also suffered issues earlier this year when it began to fluctuate away from its peg.
Tron founder Justin Sun has taken a senior role at Huobi in recent weeks and one of the immediate changes he is making is shifting volume to his own stablecoin, USDD. While Huobi didn't issue HUSD, it was active in marketing the token since its launch in 2018.
HUSD currently has a market cap of just $63 million, down significantly from its all-time high of over $1 billion in 2021.
Huobi did not immediately reply to CoinDesk's request for comment.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
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