By
Chimamanda U. Martha
March 27th, 2024
The latest decision comes two months after HUSD lost its dollar-peg and tanked nearly 8% in August 2022.
Popular crypto exchange Huobi has finally decided to part ways with one of its closely linked stablecoins, the HUSD token. On Thursday, October 27, Huobi served a notice to users that it will stop trading the $219 million market-cap stablecoin. The official announcement notes:
“As part of our continuous efforts to promote the healthy development of the blockchain ecosystem, Huobi Global will be ceasing the HUSD trading service and delisting HUSD in compliance with Article 11 of Huobi Global Token Management Rules. The service termination and delisting of HUSD will start at 08:00 (UTC) on October 28, 2022. In the meantime, users’ HUSD assets will be converted to USDT assets at a 1:1 ratio. We will publish another announcement to notify users of the completion of the conversion, which is expected to occur before November 4, 2022 (GMT+8)”.
The Huobi Global crypto exchange launched the HUSD stablecoin back in 2018, however, it has served as a minor stablecoin in terms of trading volumes. Issued by Stable Universal, Huobi heavily marketed it as a token “exclusive” to its own exchange.
However, the HUSD stablecoin has recently its own share of trouble. In August 2022, the stablecoin lost its dollar peg and crashed by nearly 8%. Besides, the issuer also closed several accounts due to some regulatory concerns.
About Capital Acquires Huobi Exchange
Earlier this month, About Capital Management announced taking a controlling stake in Huobi Exchange with the exchange selling all its equity. However, this transaction will have no impact on Huobi’s core operations and business management teams.
Post the acquisition, About Capital will focus on expanding Huobi Global to more global destinations making it the hub for first-class trading and investment services to international investors. Leon Li, the founder of Huobi, said:
“This transaction marks a new chapter for Huobi Global. Over the past nine years, we have witnessed Huobi’s ascendence into one of the largest virtual asset exchanges in the world. Following Huobi’s exit from the Chinese mainland market in 2021, we have accelerated our globalization push amidst a challenging market environment, which adds to the impetus for Huobi to seek a new shareholding structure with a global vision and international resources. We believe the successful acquisition by About Capital vehicle will contribute to Huobi’s global expansion in both aspects.”
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