HUSD looses its peg once again, this time it is substantial

HUSD has depegged to around $0.31, at the time of writing this article, according to various data aggregators. The stablecoin linked with Huobi is issued by Stable Universal and has been having issues since earlier this year – in the beginning of August the centralized exchange FTX removed it from its supported assets, which caused HUSD to depeg to as low as $0,89, however it managed to recover its 1:1 peg to the US Dollar.

Nevertheless, starting October 10, the asset started slightly diverting from its peg. Interestingly, around this time news broke out about Leon Li, founder of Huobi, selling 100% of his stake in the company to Justin Sun, who took an advisory role in Huobi. Some were even speculating that Justin Sun will try to shift Huobi’s focus to his own algorithmic stablecoin – USDD.

Just a few days ago – October 27, Huobi issued a notice to its users that it will delist the HUSD stablecoin in an effort to “promote the healthy development of the blockchain ecosystem”. Starting the next day – October 28, users' HUSD holdings are being converted to USDT at a 1:1 ratio, a process that is expected to last until November 4.

The news come days after NEAR released a statement that it will be terminating its stablecoin program allowing users to withdraw their holdings in USDT, as DeFi Teller reported.