Following Huobi's announcement on Friday that it has delisted the asset, the once-popular HUSD stablecoin has dropped precipitously from its $1 peg and to a low of 28 cents.
Users may still trade HUSD tokens for tether (USDT), the biggest stablecoin in the market based on market capitalization, according to Huobi.
The value of other assets, often fiat currencies like the dollar, pound sterling, or euro, is mirrored by stablecoins. The collapse of terraUSD (UST), which led to the downfall of the whole $60 billion Terra ecosystem, rocked the stablecoin market earlier this year.
When HUSD started deviating from its peg early this year, Stable Universal's currency also encountered problems.
Justin Sun, the creator of Tron, has assumed a senior position at Huobi, and one of the initial changes he is making is moving volume to his own stablecoin, USDD. Despite not issuing HUSD, Huobi has been actively promoting the coin since its introduction in 2018.
HUSD's market value is under $63 million right now, a dramatic decline from its all-time high of more over $1 billion in 2021.