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The digital stablecoin HUSD is down 56% of its peg to the dollar… Find out why! Arab Bitcoin

The digital stablecoin HUSD is down 56% of its peg to the dollar… Find out why! Arab Bitcoin

Disclosure details New data from cryptocurrency price tracking platform CoinMarketCap shows that the HUSD cryptocurrency has fallen significantly from its $1 peg, falling to $0.28 after it was delisted from the Huobi crypto exchange on Friday last week.

At the time of writing, HUSD is trading at $0.3315 with a trading volume of just over $1 million over a 24-hour period.

The stablecoin HUSD is down 44% in the last 24 hours, falling to 287th place on coinmarketcap, with a total market capitalization of $73.7 million.

The popular stablecoin has been trading below the peg since October 28 and held its value at $0.76 over the weekend.

Yesterday, Monday, October 31 at 4 am, the stablecoin fell significantly to the lowest level of $0.28 before rebounding a little.

What is the reason for the decrease in the value of the digital stablecoin HUSD?

Huobi delisted HUSD on Friday, October 28 and then transferred users’ assets to the stable digital currency Tether (USDT).

According to the platform’s announcement published on Thursday, October 27:

Users can still exchange HUSD digital tokens for Tether (USDT).

It is worth noting that the Tether USDT is the largest stablecoin in the industry by market capitalization.

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At the moment, it is unclear why Huobi decided to abandon its HUSD stablecoin option, but it seems that the exchange no longer prioritizes stablecoins.

According to Thursday’s update, Huobi has clarified that it will delist HUSD in accordance with Article 11 of the Huobi Global Token Management Rules.

The termination and write-off period began Friday amid a write-off period that runs through Friday, November 4, 2022.

Huobi customers will see HUSD automatically converted to Tether (USDT) in a 1:1 ratio, according to the trading platform.

For your information, Huobi is not the company behind the issue of the HUSD stablecoin, but the latter is active on the Huobi exchange and Huobi has been marketing this coin since its launch in 2018.

Huobi first introduced HUSD on October 19, 2018, although Hong Kong-based Stable Universal was responsible for issuing and managing the stablecoin.

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