On Thursday, Huobi Global made an announcement that its trading platform intends to delist the HUSD stablecoin and the process will begin on October 28th, 2022 at 08:00.
The crypto exchange also said that users who have the HUSD stablecoin on its platform are going to have their balances converted to the stablecoin USDT automatically.
It also announced that the full conversion process is expected to be complete by November 4th.
Delisting of HUSD
The Crypto exchange published its update regarding the delisting of the HUSD stablecoin on Thursday. The exchange said that its decision was in compliance with the Huobi Global Token Management Rules, specifically Article 11.
The delisting and termination period will start on Friday, October 28th and continue till November 4th. During this time, the HUSD stablecoin will be converted into Tether’s USDT in a 1:1 ratio.
This move comes after Justin Sun, the founder of Tron, expressed his support for Huobi. He also told Bloomberg he is also one of the world’s biggest holders of the Huobi tokens.
The stablecoin HUSD was first introduced on October 19th, 2018 by Huobi Global via a blog post and it had originally been designed on top of Ethereum.
The ERC20 token is pegged to the US dollar in a 1:1 ratio and the total number of tokens in circulation is 187,817,004.
It should also be noted that HUSD is not just compatible with Ethereum, but with other token standards as well, such as CRC20, TRC20 and HECO.
Taking all the chains into account, the market valuation of the HUSD token is around $223 million. However, statistics from coingecko.com show that the total valuation of the HUSD tokens is $187 million.
Even though the stablecoin was issued by Huobi Global, HUSD is actually managed by Stable Universal, which is a company based in Hong Kong.
After the announcement on Thursday, the HUSD stablecoin saw its value go below the $1 mark, as it declined to $0.9549.
It should be noted that the depegging event of the HUSD stablecoin was not the first of its kind, as it has gone below the $1 mark before as well.
The HUSD stablecoin fell below the parity range to $0.82 a token on August 18th and the coin fell to $0.90 per unit on October 11th.
The delisting of the HUSD stablecoin and its auto-conversion to the USDT token comes after the Binance crypto exchange had done the same.
Only it had announced that it would auto convert three stablecoins on its platform into its own stablecoin Binance USD (BUSD).
It did not take long for Wazirx to announce the same and it converted the stablecoin assets of its customers into BUSD as well.
Furthermore, the two leading stablecoins in the market i.e. USDT and USDC, have also seen the total number of their tokens in circulation decline by tens of billions.
While people may have been concerned, Tether and Circle, the issuers of the stablecoins have remained unconcerned.
On Friday morning, the HUSD stablecoin fell below the $1 parity range again, as it fell to $0.899.