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Stablecoins lost their peg over the past few months, contradicting their concept. As officials are working to monitor the stablecoin market, another asset lost its peg yesterday. HUSD, a stablecoin formerly supported by Huobi Global, fell as low as $0.84. But the cryptocurrency platform recently announced to have resolved its liquidity problem.
HUSD's Liquidity Situation
It should be highlighted that the company issuing HUSD is Stable Universal Limited, a startup funded by Huobi. Huobi decided to end the initiative in April. In June 2021, Huobi Trust, a retail trust corporation with a Nevada state charter, took over as the project's new custodian. However, the company recognized and dealt with the HUSD's liquidity situation.
HUSD Stablecoin Liquidity Issues Resolved
The crypto platform released a tweet today proclaiming the resolution of the stablecoin's liquidity problem. The exchange also advised consumers to exercise caution due to cryptocurrency's market volatility. Huobi stated,
"Given the recent volatility in the cryptocurrency market, we advise our users to pay close attention to and be aware of potential risks."
https://twitter.com/HuobiGlobal/status/1560454800155676672 The community wasn't surprised by this one after the failure of several stablecoins. However, regulators can use the most recent price change in HUSD to enact harsher rules. Many nations, including the UK, are developing laws about the same.