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Husd stablecoin briefly lost the binding to the dollar
On August 18, the rate of issued Stable Universal Steabelcoin Husd fell to 92 cents due to liquidity problems.
The HUSD stabilcoin based on Ethereum is provided with a dollar reserve in a ratio of 1: 1. As the Huobi cryptocurrency exchange explained in the FORKLOG commentary, the loss of parity was preceded by large HUSD sales, which put pressure on the price of token.
“Usually the restoration of the balance of the binding should occur naturally. However, if an abnormally large number of stablecoins are sold and the issuer freezes the redemption of stablecoins per fiat, the balance is impossible, ”they said.
Huobi added that the reasons why Stable Universal froze the HUSD ransom is not entirely clear. However, it was suggested that this may be due to what happened two weeks earlier than the divisting of Stablecoin from the FTX Exchange FTX.
Husd deviation from parity to the dollar has become maximum since the launch of token in 2018.
After negotiations with Stable Universal by the morning of August 19, liquidity problems were resolved. Husd returned to the dollar binding with a complete renewal of payments.
“Throughout the incident, Huobi provided users with the opportunity to freely convert HUSD into stable coins, such as USDT and USDC, or other tokens available on the platform,” the exchange team added.
Huobi did not reveal additional details, noting that the consequences for users were minimal.
In recent days, exchange volumes and other operations have remained stable.
“Given the recent volatility in the cryptocurrency market, Huobi advises its users to be attentive and realize potential risks,” the exchange said.
Recall that at the end of June, hackers attacked the Nirvana Defi project, as a result of which Stablecoin NIRV lost parity for the dollar.
Read more about the unstable course of stabelcoins in the bear market in the FORKLOG material.
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