After HUSD pegged back to the dollar, crypto exchange Huobi explained what caused the short-term liquidity problem and reassured users that it was fixed.
Previously, the value of HUSD began to decline due to its tie against the dollar. It traded at $0.92 and dropped as low as $0.82 a few hours later. This has caused quite the panic among members of the crypto community.
Huobi announceThey immediately contacted Stable Universal Limited, the stablecoin issuer, and are working to restore stability. And after that, it almost recovered to the dollar, trading at $0.99 against HUSD before returning to $1 on Friday.
HUSD Team Says Depeg happenfrom the decision to close the market maker account in certain regions. to comply with regulations The team explained that the time difference between the bank’s business hours Causing a gap leading to liquidity problems and causing HUSD to depeg.
Huobi givesconfidencewith customers through announcing that The problem has been taken care of completely. and encourage users to pay close attention and be aware of the risks that may arise due to market volatility.
The post Huobi explains what happened to HUSD after stablecoin came back to normal appeared first on Bitcoin Addict.