Stablecoins including HUSD lost their peg over the past few months, contradicting their concept. It has survived up to this point despite Terra’s irritation with the idea. Another asset lost its peg yesterday as officials worked to supervise the stablecoin market. HUSD, a stablecoin that was formerly supported by Huobi, fell as low as $0.84. But as of late, the cryptocurrency platform said that its liquidity problem has been resolved.
It should be highlighted that the company issuing HUSD is Stable Universal Limited, a startup funded by Huobi. Huobi made the decision to end the initiative in April. The company did, however, acknowledge and deal with the stablecoin’s liquidity crisis.
The crypto platform released a tweet earlier today proclaiming the resolution of the stablecoin’s liquidity problem.
The exchange also advised consumers to exercise some caution due to the market volatility for cryptocurrencies. Huobi stated:
“Given the recent volatility in the cryptocurrency market, we advise our users to pay close attention to and be aware of potential risks.”
The community wasn’t surprised by this one after the failure of several stablecoins. However, regulators can use the most recent price change in HUSD to enact harsher rules.
Regulators from all across the world were notified of Terra’s failure, along with that of its algorithmic stablecoin TerraUSD. These assets’ low volatility had not previously presented a concern. But after the Terra disaster, everything changed completely. Stablecoin inclusion in existing rules is already being considered by some nations, notably South Korea. The UK appears to be doing the same.
HUSD might be getting back on track
The volatility of the crypto-verse is well known throughout the entire world. Stablecoins, on the other hand, came as a blessing for individuals who worry about sharp price changes. But something appears to have disturbed this idea.
HUSD was gradually making progress yesterday after hitting a low of $0.8439. The stablecoin was getting closer to its $1 peg after an 18% increase. The asset’s price was $0.9971 at the time of writing, up 7.96% over the last 24 hours.