Released by Stable Universal HUSD stablecoin, It managed to bounce back to its $1 stable after falling 8% on Thursday.
HUSD Stablecoin Falling As Low as $0.84 Looks Like It Has Been Recovering
In a tweet on Friday, HUSD said the drop in value was linked to several account closures, including market maker accounts.
The altcoin’s market cap, which dropped to $136.3 million on Thursday, is currently at $160 million.
Stablecoins are designed to hold fixed value against other assets, usually fiat currencies such as dollars or euros. cryptocurrency are units. An algorithmic stablecoin with a market cap of $18.71 billion. TerraUSD (UST) It collapsed earlier this year.
The price of algorithmic stablecoins is tied to another cryptocurrency whose price is sensitive to volatility, which puts such assets at risk of collapse, as in the case of Terra.
On the other hand, HUSD is backed by cash, meaning every token issued is backed by a dollar in the bank.
In the post shared from the official Twitter account of stablecoin, the following was said about the subject:
“We have made the decision to close several accounts in certain regions, including some maker accounts, to comply with legal requirements. Due to the time difference in banking hours, this caused a short-term liquidity issue, but this issue has now been resolved.”
Overview of the HUSD incident:
On Aug 18 at 10:05 (UTC), Huobi detected unusual price fluctuations of HUSD.
At 10:10 (UTC), we contacted Stable Universe Limited, the issuer of HUSD.
At 10:30 (UTC), we confirmed the cause with the issuer and worked together on a solution.
— Huobi (@HuobiGlobal) August 19, 2022
Crypto exchange Huobi said it was working to fix the problem and announced that the fix was restored within 12 hours.
*Not investment advice.
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