Just after Huobi made known its move to delist its token, HUSD, the exchange platform’s stablecoin plummeted, dropping to 60 percent of its previous worth. Later, Huobi said that it will help investors in converting their existing HUSD assets into USDT, one of the biggest stablecoins by market capitalization.
HUSD Experiencing Another Deppegging
Shortly after the platform decided to delist the stablecoin, HUSD was depegged. The company also explained how it will aid consumers in converting their HUSD assets into USDD, the stablecoin created by Justin Tron of Tron Network.
In accordance with Article 11 of the Huobi Global Token Guidelines, Huobi International will cease providing its HUSD exchange service and delist HUSD as a component of its ongoing attempts to support the positive growth of the crypto space.
On October 28, 2022, at 08:00 (UTC), HUSD will begin to cease operations and be delisted. Users’ HUSD holdings will be changed to USDT holdings in the interim at a ratio of 1:1. To let consumers know when the processing is done, which is anticipated to happen before November 4, 2022, the exchange plans to post another notification.
Has Justin Sun Acquired Huobi?
Market rumors abound regarding whether Justin Sun, the inventor of Tron cryptocurrency, has purchased Huobi. According to Wu blockchain, Sun has already assumed control of the company and is implementing retrenchments to stabilize the firm’s activities.
Wu also asserts that Sam Bankman-Fried, the CEO and founder of FTX, was a major player in the whole acquisition of Huobi. According to Wu Blockchain’s post, there are rumors that FTX invested to aid Justin Sun. Additionally, this may elevate Justin Sun’s rival Binance from its position of support.
Justin Sun, the creator of the cryptocurrency Tron, has not yet confirmed these allegations. Sun recently announced his new position as Huobi’s worldwide adviser on Twitter, although he withheld any information on Huobi’s claimed takeover.
HUSD has already depegged on its value in dollars. Before August 2022, the stablecoin lost its dollar peg as a result of extreme price swings. Currently, the token’s valuation was less than $63 million, dropping 60percent in the last day, and selling at $0.3082.