The Seychelles-based cryptocurrency exchange Huobi has provided a timeline explaining its actions during HUSD’s de-pegging event on Thursday.
The exchange confirmed that the problem began with the stablecoin’s issuer.
- According to a tweet from Huobi, the firm detected “unusual price fluctuations” from its namesake stablecoin at 10:05 UTC on August 18.
- Within five minutes, Huobi contacted the issuer of HUSD, Stable Universe Limited.. By 10:30, both the exchange and issuer identified the cause – though Huobi didn’t elaborate in its tweet.
- By 22:00 UTC, HUSD trading returned to trading at $1.00, as intended. Therefore, its peg had recovered within 12 hours.
“We would like to reiterate: #Huobi has always prioritized the security of our users’ assets since our inception in 2013,” said the company.
- Data from CoinMarketCap showed that HUSD fell below $0.90 on Thursday.
- Huobi put out a message to its official Telegram group shortly afterward. It clarified that control of the stablecoin lay with Stable Universe Limited and that it had exited its stake in the issuer back in April.
- The stablecoin’s recovery bears a stark contrast to TerraUSD, which collapsed permanently in May despite extensive efforts from the Luna Foundation Guard to recover its peg.
- Centralized stablecoins have shown relatively greater strength in the face of price pressure. Tether (USDT) faced billions of dollars in redemptions after Terra fell apart, but any volatility it experienced was short-lived.
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