The HUSD team said that the de-peg happened because a market maker account was closed, which made it hard to get money.
Stable Universal’s HUSD stablecoin, which dropped by 8% on Thursday, is now back to being worth $1.
Friday, HUSD said in a tweet that the drop in value was due to the closing of several accounts, including market maker accounts. On Thursday, the coin’s market value fell to $136,3 million, but it is now back up to $160 million.
Stablecoins are cryptocurrencies that are designed to hold their value against other assets, usually fiat currencies like the dollar or euro. TerraUSD (UST), an algorithmic stablecoin with a market cap of $18.71 billion, failed earlier this year. HUSD is backed by cash, meaning that for every token issued, there is a dollar in a bank.
“We had decided to close a number of accounts in certain regions, including some market maker accounts, to meet legal requirements. Because banks are open at different times, this caused a short-term liquidity problem that has since been fixed. “In a tweet, HUSD said.
Huobi, a crypto exchange, said that it was working to fix the problem and that the peg was back in place within 12 hours.
