Stablecoin HUSD, supported by the Huobi crypto exchange, has shortly lost its dollar peg over "liquidity issues," the exchange said in a tweet.
According to Nomics, the stablecoin's price plunged by 15% to $0.85, but managed to recover in a few hours. As of press time, HUSD is trading at $0.99.
Huobi said it was aware of the current "liquidity issues" associated with the HUSD stablecoin. The exchange added that it will work together with HUSD's issuer — Stable Universal Limited — to find a solution and restore its stability as soon as possible. As of press time, it remains unclear what caused the fall.
The incident appears just a few days after reports said that Huobi Founder, Leon Li, was in talks with a group of investors to sell his stake in the exchange. Li is reportedly aiming to sell his majority of stake for $3 billion.
