According to data from CoinMarketCap, HUSD is the most recent stablecoin to lose its 1:1 parity with the U.S. dollar, as it fell by 15% on August 18th.
HUSD is an ERC-20 token on the Ethereum blockchain and has been marketed as a secure stablecoin that combines the stability of the U.S. dollar with the efficiency of blockchain.
The cause of the de-pegging is not made clear, however, Huobi Global, a cryptocurrency exchange that participated in the launch of the stablecoin in 2019, issued an announcement regarding HUSD’s liquidity issue.
“Huobi has always prioritized the safety of our customer’s assets, and will work together with HUSD’s issuer to find a solution and restore its stability as soon as possible,” the exchange wrote on Twitter.
Huobi announced on the following day that the problem has been resolved with Stable Universe Limited, the issuer of HUSD, however has not released details on what initially caused the fall in price.
At the time of this writing, the stablecoin sits at $0.9976 and has recovered the majority of its losses.