According to a statement from Huobi Global, trading in its HUSD stablecoin will cease and the token will be delisted on Friday.
Following the delisting, Huobi users’ HUSD holdings will be changed into USDT at a 1:1 ratio, the exchange said, adding that it anticipates the conversion to be finished by Nov. 4 in Hong Kong.
According to the notice from Huobi Global, the delisting is scheduled as part of “our ongoing efforts to foster the healthy development of the blockchain ecosystem.”
According to CoinMarketCap, the price of HUSD dropped to US$0.94 as of 10 a.m. Hong Kong time. Most recently, the coin traded at US$0.97. Since the stablecoin’s depeg from its 1:1 conversion ratio to the US dollar in August, it has often traded at less than $1.
Overview of the HUSD incident:
On Aug 18 at 10:05 (UTC), Huobi detected unusual price fluctuations of HUSD.
At 10:10 (UTC), we contacted Stable Universe Limited, the issuer of HUSD.
At 10:30 (UTC), we confirmed the cause with the issuer and worked together on a solution.
— Huobi (@HuobiGlobal) August 19, 2022
Huobi Global launched the HUSD in 2018. Stable Universal, a startup sponsored by Huobi Capital and using Paxos as its custodial partner, became the new issuer of HUSD in 2019.
About Capital, an asset management company with headquarters in Hong Kong, purchased Huobi Global in October.
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