HUSD Stablecoin Backed By Cash Loses Peg, “Rug Pull” Suspect?
What caused HUSD, a stablecoin created by Stable Universal, to abruptly stray from the 1 USD anchor?
According to CoinMarketCap, the Stable Universal stablecoin has abruptly strayed from the $1 peg and is currently trading around the $0.92 level. 16 days after cryptocurrency exchange FTX deleted HUSD from its collection of backed stablecoins, there was a depeg crash.
The incident’s cause is still a mystery, and the project side hasn’t released a statement. Many users have voiced their displeasure with the HUSD issuer’s silence.
In response to considerable indignation, Huobi reassured clients:
HUSD and USD are interchangeable on a 1:1 basis
All tokens that have been issued by HUSD are backed by USD and are kept in accounts containing cash, according to the asset attestation report that was published a year ago. HUSD’s market cap as of this writing is $149.5 million.
A hole in the liquidity pool with iBTC is what caused Acala Network’s aUSD to join the list of de-ped stablecoins less than 4 days ago.
A stablecoin is a type of cryptocurrency intended to maintain value alongside another asset. However, the stablecoin network has always been extensively scrutinized by governments all around the world since the collapse of the Terra ecosystem.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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