Another Stablecoin Collapses, HUSD Loses Peer By Investing.com
Investing.com – becomes the latest stablecoin to lose parity with the dollar and face huge liquidity problems. The cryptocurrency seems to be struggling to maintain the value of one dollar. The decline started yesterday, but has gotten much worse today.
HUSD fell to a low of $0.92 yesterday before recovering to $0.96. However, the stablecoin fell in value in the early morning hours, falling to $0.87 by early afternoon. That equates to a drop of more than 13%.
Stablecoin HUSD was launched by cryptocurrency exchange Huobi in 2018. Huobi, which appears to have supported the stablecoin until now, reportedly dropped the project in April. However, the company promises to help solve the project’s current liquidity problems to enable its recovery.
According to Huobi, the company would work together with the HUSD issuer to find a solution and restore its stability as soon as possible to ensure the asset value of its users.
HUSD’s decline further fuels fears about security and proper asset management in the crypto sphere. HUSD is the latest stablecoin among several to experience the loss of its parity, a particularly market-shaking case.