HUSD, a stablecoin linked to the Huobi crypto exchange, lost its peg and dropped to around $0.85. HUSD is a cash-backed stablecoin intended to be pegged to the US dollar, but the coin lost its peg due to "liquidity issues". HUSD later tweeted that, "We had made the decision to close several accounts in specific regions to comply with legal requirements, which included some market maker accounts. Due to the time difference in banking hours, this resulted in a short-term liquidity problem". The stablecoin restored its peg on August 18.Several weeks earlier, major crypto exchange FTX announced that they had removed HUSD from their USD basket, meaning they would not be able to be used as collateral.
Huobi worked to distance itself from HUSD as the coin de-pegged, emphasizing that the token is maintained by a different entity and claiming to have exited their stake in that entity in April. However, the token was originally launched by Huobi in 2018, and Huobi has continued to run promotions involving the token as recently as July.
