As per the last 24 hour’s market reports, the price of HUSD the stablecoin of Huobi has been cut down to $0.3 From its pegged value of one dollar. This price fall of the stablecoin is considered its lowest price since its inception and market acceptance in 2019. Some analysts predict this situation as the proximity of terra currency fall this year in May, but the underlined results of the stablecoin future will be visible with time and the next market conditions.
What is HUSD?
HUSD was the stablecoin introduced by the cryptocurrency exchange platform Huobi in 2019. The platform introduced this stable coin after collaborating with two companies, the Stable Universal and the Paxos Trust Company. The stablecoin was made with the Ethereum blockchain technology as its core technology aligning with the fiat currency collation mechanism.
Why the HUSD was delisted?
The Huobi announced to delisting of the stablecoin from its platform and allowed its users to convert the stablecoin to the other preferred options like Tether (USDT), this delisting news impacted HUSD’s price very sharply from its delisting price of $0.98 last week.
How stablecoins are pegged?
The stablecoins like the HUSD are applied to fiat currencies like the US dollar or the Euro or in some other condition with precious metals like the metals. The stablecoins are pegged in a proportion of 1:1 ratio, which accounts for one stablecoin and will be considered equivalent to one dollar of pegged value as the promissory option. In this manner, each HUSD is considered to be backed by the financial liability of the issuing company and the exchange by one dollar.
What is the future of HUSD after delisting?
The delisting of the stablecoin will help the stablecoin founding team to work on the future aspects and the growth aspects of the stablecoin by working on the long-term roadmap for the stablecoin. The stablecoin core team will be working on the future technological parameters for the long-term fortune. The team will also work on core principles of stablecoin for foundation building with which the stablecoin will be able to resist the market shocks and falls like the terra-luna fall this year in may.
What is the difference between the terra luna and HUSD price falls?
The stablecoin terra encouraged the fall due to the sudden high selling pressure situations in the market after the news speculations and the huge amount of transactions in the market. This resulted in a death squirrel crash of stablecoin terra. This will not be the case will the HUSD as the liquidity issues of the HUSD can be saved and managed by the company, as per the company records.