Amidst uncertainties and high volatility in the Crypto industry, many Cryptocurrency projects fail to become successful. After a certain period, these projects close down. Even exchanges delist such Crypto from their platform. Stablecoins, which are assumed to have less volatile conditions, tend to fall as well. Visit https://bitqs.io if you’re looking for a top-notch trading platform for your crypto assets.
Similar is the case of HUSD which is a stablecoin too. This coin was listed on the Huobi platform and now, this exchange is delisting this coin. With this step, the stablecoin is facing a downfall from its pegged value of $1. During the launch of this coin, Huobi had high importance in its marketing. Despite all these, the exchange is cutting all links with HUSD.
HUSD As A Stablecoin
Stablecoins are an alternative to the top-performing coins like BTC and ETH. These coins have high volatile conditions and to provide investors with a safe option, stablecoins are considered.
These coins have a linkage with traditional fiats or assets like Dollars or Gold. As these are pegged with these assets, they offer stable and safer investment options. Some common stablecoins are USDT, BUSD, and USDC.
HUSD is a new advent in the market as stablecoins. It is a secure and stable option like the other stablecoins. If you invest in this coin, you can cut off the risks and volatility while trading Cryptocurrencies. Despite all these, it lacked transparency in its prices. So investors found it hard to invest in HUSD. To tackle this issue, the developers decided to go independent of any exchange!
Also, during market fluctuations, HUSD lets you switch to other stablecoins that are pegged with fiats. This coin supports 4 other stablecoins at present. These are PAX, TUSD, GUSD, and USDC. You can deposit any of these coins and can convert them to HUSD. After this, you can either choose to trade in the market with HUSD. Or, you can withdraw in these 4 options of Stablecoins.
Delisting Of HUSD By Huobi Platform
Despite the benefits of this stablecoin, it has been removed from Huobi’s list of Crypto. Also, this stablecoin is not free from issues in its functioning which led to this step. After the announcement of this news by Huobi, the coin faced a dramatic downfall.
It is now trading at the lowest rate of 28 cents from its pegged value of $1. But, the exchange announced that the users who are holding HUSD can convert their tokens to Tether or USDT. With this, they can save themselves from losses that otherwise HUSD will offer them. The exchange is offering the option of USDT as it is the largest stablecoin in terms of market capitalization.
Though stablecoins should offer a stable and less-risky option, the fall of UST left everyone in shock. The entire sector of stablecoins is in chaos as UST is going through a terrible collapse. With this, the Terra ecosystem experienced an implosion of around 60 Billion USD!
Stable Universal issues HUSD and this coin suffered a huge collapse as well. The collapse occurred when this stablecoin faced fluctuations and moved away from its pegged value.
In the past few weeks, Justin Sun, who is the founder of Tron, took a senior position in Huobi. After this, he converted the majority of the volume to USDD! This is the major step he took after taking the position.
Also, HUSD was not issued by this exchange, but it played a huge role in its marketing back in 2018. After the step taken by Justin, HUSD is facing a huge downfall. Its market capitalization is around 63 Million USD. Whereas, its total market cap was 1 Billion USD last year!
Conclusion
CoinDesk tried to reach out to the members of the platform to understand more about this matter. But, Huobi did not give any immediate response to their queries.
After delisting this stablecoin, it is facing a huge amount of loss. HUSD is losing investors and with this, its market cap is falling too! Also, the members of Huobi are not providing any clear answers of why they are excluding HUSD.
