{"id":486022,"date":"2022-08-19T16:32:47","date_gmt":"2022-08-19T13:32:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/huobi-explains-what-went-wrong-with-husd-after-stablecoin-is-back-on-track\/"},"modified":"2022-08-19T16:32:47","modified_gmt":"2022-08-19T13:32:47","slug":"huobi-explains-what-went-wrong-with-husd-after-stablecoin-is-back-on-track","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/huobi-explains-what-went-wrong-with-husd-after-stablecoin-is-back-on-track\/","title":{"rendered":"# Huobi explains what went wrong with HUSD after stablecoin is back on track"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36ea51351f9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36ea51351f9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/huobi-explains-what-went-wrong-with-husd-after-stablecoin-is-back-on-track\/#%E2%80%9D_Huobi_explains_what_went_wrong_with_HUSD_after_stablecoin_is_back_on_track_%E2%80%9C\" >&#8221; Huobi explains what went wrong with HUSD after stablecoin is back on track  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Huobi_explains_what_went_wrong_with_HUSD_after_stablecoin_is_back_on_track_%E2%80%9C\"><\/span>&#8221; Huobi explains what went wrong with HUSD after stablecoin is back on track  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvMTBmMWI4MDgtMDdmMS00ODhmLWI4MmEtZTc5Mjk3NDBmNjU0LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>After recovering the HUSD stablecoin\u2019s dollar peg, crypto exchange Huobi explained what caused the short-term liquidity problem and assured users that it has been resolved.\u00a0<\/p>\n<p>On Aug. 18, HUSD started to fall from its dollar value, trading at $0.92 at the start of the day and falling as low as $0.82 a few hours later. This alarmed community members, speculating what may h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en if the stablecoin doesn\u2019t recover its dollar peg. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">HUSD was once one of the safest stablecoins. Now it&#8217;s off its peg. If HUSD doesn&#8217;t return to $1, it&#8217;d be the first fully-reserved centralized stablecoin to fail. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/9WmROQR6lD\">pic.twitter.com\/9WmROQR6lD<\/a><\/p>\n<p>\u2014 John Paul Koning (@jp_koning) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/jp_koning\/status\/1560320535329849344?ref_src=twsrc%5Etfw\">August 18, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nIn response to the concerns, the crypto exchange platform im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HuobiGlobal\/status\/1560189622407528448\">announced<\/a> that they have been in contact with the stablecoin issuer, Stable Universal Limited, and are working to restore the stability. Before the day ended, the Ethereum-based stablecoin almost recovered its dollar peg, trading at $0.99 per HUSD, before going back to $1 on Aug. 19. <\/p>\n<p>According to the HUSD team, the depeg was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Stablecoin_HUSD\/status\/1560437649256902656\">caused<\/a> by a decision to close market maker accounts in some regions to comply with regulations. The team explained that the time difference in banking hours created a gap that led to a liquidity problem, leading to HUSD falling from its peg. <\/p>\n<p>Huobi then assured its customers through an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HuobiGlobal\/status\/1560454802282123264\">announcement<\/a> that the issue had been completely taken care of and urged its users to pay close attention and be aware of any potential risks due to the market&#8217;s volatility. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Tether reserve attestations to be conducted by major European accounting firm<\/em><\/strong><\/p>\n<p>Meanwhile, an exploit minting 1 billion Acala Dollar (aUSD) caused the stablecoin to depeg by 99%. In response to the attack, the Acala team froze the hacker&#8217;s wallet, raising questions over the platform&#8217;s decentralization claims. The team was eventually able to recover a large portion of the tokens that were not collateralized. <\/p>\n<p>In June, the USDD stablecoin also fell from its dollar peg as one of the funds that capitalized on the TerraUSD (UST) depeg started to actively transfer huge amounts of USDD. However, the depeg did not last long as the Tron DAO Reserve mobilized 700 million USD Coin (USDC) to defend the peg. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/huobi-explains-what-went-wrong-with-husd-after-stablecoin-is-back-on-track\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Huobi explains what went wrong with HUSD after stablecoin is back on track &#8220; After recovering the HUSD stablecoin\u2019s dollar peg, crypto exchange Huobi explained what caused the short-term liquidity problem and assured users that it has been resolved.\u00a0 On Aug. 18, HUSD started to fall from its dollar value, trading at $0.92 at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":486023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDgvMTBmMWI4MDgtMDdmMS00ODhmLWI4MmEtZTc5Mjk3NDBmNjU0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75591,75493,117,70934],"class_list":["post-486022","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-huobi","tag-stablecoin","tag-business","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=486022"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/486022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/486023"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=486022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=486022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=486022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}