HUSD stablecoin has lost its peg – possible 200mm shortfall
1 min read
Huobi’s HUSD is currently trading at $0.85 on Huobi Global exchange.
Stablecoin universal are the issuer of HUSD and should have 1:1 backing for each coin issued. They are currently not providing liquidity, unknown whether they have the 200mm to back up the coins market cap currently.
FTX and Paxos have removed support for the stablecoin. HuobiGlobal have also removed support for swapping 1:1 which begs the question is it backed up 1:1 or have the issuer been investing it poorly and now cannot honour the peg.
It’s possible the issuer was invested in Luna UST or Chinese bonds and now cannot make up the shortfall. The coin could collapse to zero and join the growing list of failing stablecoins.
Not sure if Huobi will be able to recover from this.
Recent news shows that their founder Li Lin is also trying to sell his entire stake in the company so things do not look good.
https://cryptopotato.com/huobis-founder-li-lin-reportedly-looking-to-sell-his-stake/
This is speculation and not advice.
Thoughts?
submitted by /u/Thisishuge
[link] [comments]
