Huobi’s Stablecoin Shortly Loses Dollar Peg Over ‘Liquidity Issues’

Stablecoin HUSD, supported by the Huobi crypto exchange, has shortly lost its dollar peg over “liquidity issues,” the exchange said in a tweet.

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According to Nomics, the stablecoin’s price plunged by 15% to $0.85, but managed to recover in a few hours. As of press time, HUSD is trading at $0.99.

Huobi's Stablecoin Shortly Loses Dollar Peg Over 'Liquidity Issues'

nomics.com

Huobi said it was aware of the current “liquidity issues” associated with the HUSD stablecoin. The exchange added that it will work together with HUSD’s issuer — Stable Universal Limited — to find a solution and restore its stability as soon as possible. As of press time, it remains unclear what caused the fall.

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The incident appears just a few days after reports said that Huobi Founder, Leon Li, was in talks with a group of investors to sell his stake in the exchange. Li is reportedly aiming to sell his majority of stake for $3 billion.

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