HUSD, a stablecoin that has been closely linked to the leading crypto exchange Huobi, has fallen further away from its $1 peg.
According to data from CoinMarketCap, HUSD dropped to a low of $0.68 on Sunday after Huobi delisted the token from its trading platform.
In a notice to users on Friday, the crypto exchange said that HUSD would be removed at 4:00 pm ET on Oct. 28. Huobi said it would convert all HUSD held on the exchange to USDT on a 1:1 ratio.
HUSD was launched in 2018 by Stable Universal and was first listed for trading on the Huobi Global exchange. The stablecoin is backed by U.S. dollars held in reserves by the Paxos Trust.
This isn’t the first time that HUSD has lost its dollar-peg. In August, Huobi said it had “detected unusual price fluctuations” in HUSD after the asset began trading under the $1 mark. The issue was resolved 12 hours later when the stablecoin regained its dollar-peg. At the time, Huobi said that all user funds were safe and it would continue to prioritize security of assets on the platform.
After the incident, Huobi told members of its official Telegram group that it had exited its stake in HUSD-issuer Stable Universal in April.
The delisting of HUSD over the weekend may have been Huobi’s way of cutting all remaining ties with the troubled stablecoin. At the time of writing, it had a market cap of $180 million – a relatively low figure compared to dominant crypto stablecoins like USDT and USDC that each have a market cap of more than $40 billion.