Huobi Explains The Loss Of HUSD’s Peg $1
Huobi has explained why stablecoin HUSD lost peg in a short time. After 12 hours of effort stablecoin has regained the $1 balance.
As was updated in a previous Coincu News article, stablecoin HUSD quickly lost its peg on August 18, alarming investors as well as its users for a short time. The stablecoin plummeted 15% after losing its peg, which prompted crypto exchange Huobi to step in and assist the HUSD team in averting the aforementioned crisis.
However, the HUSD team recently shared an update on Twitter, notifying users that their stablecoin has finally returned to its original $1 value.
The team further outlined the reason why HUSD crashed almost 15% yesterday after losing its peg temporarily. Per the official tweet, the HUSD team had earlier decided to close several accounts across specific regions to comply with legal requirements. The decision also included closing several market maker accounts.
In addition to this, the time difference in banking hours had created a short gap, which ultimately led its stablecoin to de-peg, triggering a short-term liquidity crisis.
HUSD has briefly escaped the growing list of stablecoins which had recently lost its peg and had crashed almost 99% in value. Dubbed as one of the biggest stablecoins crashes in history, Terra UST had earlier crashed in May and had sent shockwaves in the crypto community.
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