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Huobi Global Ltd. has announced plans to discontinue ten trading pairs, predominantly those associated with the USDD stablecoin, as part of their ongoing efforts to optimize user trading experiences.
Renowned digital currency exchange Huobi Global Ltd. stated that it will discontinue ten specific trading pairs, primarily those connected to the USDD stablecoin. This stablecoin, issued by the TRON DAO Reserve, has significant backing from well-known digital asset entrepreneur Justin Sun.
Huobi intends to delist trading pairs involving the ADA token of Cardano, SOL of Solana, APE of ApeCoin, MATIC of Polygon, FIL of Filecoin, and ETC of Ethereum Classic in combination with USDD, starting from June 29th. Additionally, ARPA, GAS, QTUM, and ZKS pairs with bitcoin will also be excluded from the platform. The exchange rationalized these actions as part of its initiative to deliver a superior trading experience to users.
.#JustinSun just removed some of his stablecoin liquidity on the #BSC in the past hour,
— 0xScope (🪬 . 🪬) (@ScopeProtocol) June 21, 2023
specifically $USDD (6.28M) and $BUSD (5.48M) from #Ellipsis and #Pancake, and then deposited to #Huobi.
Currently, the liquidity for $USDD on BSC's DEX is insufficient. pic.twitter.com/AuMP0QbHvv
Huobi, with its roots in China, plays a significant role as a marketplace for spot and derivative trading of digital assets. This move of delisting follows recent legal action by the SEC, which categorized the majority of these tokens as unregistered securities in lawsuits against exchanges such as Binance and Coinbase. Earlier, Robinhood and eToro had discontinued some of these tokens.
Stablecoins are digital tokens explicitly engineered to maintain parity with less volatile assets, like the dollar. They typically secure this stability by holding reserves of cash or cash-equivalent assets as collateral.
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Stablecoins serve as a critical tool for traders, facilitating fund transfers between exchanges and acting as a shelter from price volatility, thereby making them some of the most frequently traded tokens in the crypto world.
Currently, USDD ranks as the eighth-largest stablecoin by market capitalization, estimated at around $750 million. Huobi is considered the most popular platform for purchasing and trading this token, as per data from crypto market analytics firm CoinGecko.
The USDD stablecoin, issued by the TRON DAO Reserve, is backed by multiple digital assets including bitcoin, ethereum, and TRON. DAO, or Decentralized Autonomous Organization, employs blockchain technology to streamline various voting and transaction processes.
Justin Sun, founder of the TRON blockchain and adviser to Huobi, is rumored to have acquired a controlling stake in Huobi for around $1 billion via a Hong Kong-based asset manager last November. However, Sun has consistently refrained from confirming any ownership interest in the past.
Read more: Huobi to expand trading service into Hong Kong crypto market