On Thursday, the cryptocurrency exchange Huobi Global announced that the trading platform plans to delist the stablecoin HUSD and the delisting will begin at 08:00 (UTC) on October 28, 2022. Furthermore, users with HUSD held on the exchange will see their balances auto-converted to the stablecoin asset tether and the exchange expects to complete the full conversion by November 4.
Huobi Global Reveals Plans to Delist HUSD and Auto-Convert Balances to Tether, HUSD Stablecoin Drops Below $1 Peg Following Announcement
Huobi is set to delist the stablecoin HUSD according to an update from the exchange published on Thursday. The trading platform detailed that it is “delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules.” The termination and delisting period will begin on Friday and amid the delisting period up until November 4, 2022, Huobi’s customers will see their HUSD auto-converted into tether (USDT) at a 1:1 ratio. The move follows Tron founder Justin Sun’s backing of Huobi and telling Bloomberg he’s “one of the biggest holders” of Huobi tokens worldwide.
HUSD is a stablecoin first introduced in a blog post published by Huobi Global on October 19, 2018, and it was originally built on top of Ethereum. The ERC20 token is backed 1:1 with the U.S. dollar and 187,817,004 are circulating in the wild today. In addition to Ethereum, HUSD is also compatible with other token standards like HECO, TRC20, and CRC20. Between all the chains the HUSD web portal says that it has a market valuation of around $223 million, while coingecko.com stats show $187 million.
While Huobi introduced HUSD, the stablecoin asset is issued and managed by the Hong Kong-based firm Stable Universal. After the announcement on Thursday, the stablecoin HUSD depegged from the token’s $1 parity down to $0.9549 per unit at 7:09 p.m. (ET). Thursday evening’s depegging event was not HUSD’s first rodeo derailing off of the $1 parity range. On August 18, HUSD slipped below the USD peg to $0.82 per token and on October 11, the coin dropped to $0.90 per unit.
The HUSD delisting and auto-conversions to USDT follow Binance’s move to auto-convert three different stablecoins into BUSD. Wazirx also opted to auto-convert its customers’ stablecoin assets into BUSD. Moreover, the top two stablecoins by market valuation — USDT and USDC — have seen their coins in circulation drop by tens of billions. On Friday morning at around 5:23 a.m. (ET), HUSD slid off the $1 peg again, dropping to a low of $0.899 per unit.